The United States is facing what is shaping up to be a perfect storm of economic bad news, with higher than normal energy prices and inflation compounded by a spiraling debt crisis and fears of economic turmoil amid high stakes debt limit talks. Meanwhile, BRICS nations are brainstorming a way to de-dollarize the international trade order.
Emerging market investors are slowly but steadily moving away from dollar-denominated debt and assets, instead preferring to park their hard-earned money into local currency bonds, an analysis by fund flow and asset allocation data provider EPFR Global has revealed.
According to the company’s figures, investors pulled out a net $2.65 billion out of primarily dollar-denominated assets between January and April of 2023, but added a net $5.23 billion into local currency bond funds.
Market analysts attribute the switch to attractive yields and falling inflation on local bond markets, and an increasingly unattractive dollar amid uncertainty surrounding interest rate-related volatility. The latter put a major dent in US Treasuries’ attractiveness to investors, and culminated in the collapse of Silicon Valley Bank in March, and panic among investors.
Fidelity International emerging markets debt portfolio manager Paul Greer expects the trend of weakened demand for dollar-denominated debt and assets to continue for the rest of the year. ABP Invest chief investment officer Thanos Papasavvas says there has been a “clear divergence between emerging market local and hard currency bonds [typically dollars and other major Western currencies, ed.] over the past few quarters with local currency debt looking more attractive on a fundamental and valuation basis.”
The trend of a cautious move away from the dollar, which continues to hold the coveted status of the world’s de facto reserve currency in trade, comes amid the growing risk of the US defaulting on its massive $31.8 trillion debt amid bickering between the White House and Republicans in Congress on federal spending and the debt limit.....More Below
Iran has warned international investors and financial institutions, stating that entities financing the United States' military apparatus are now considered legitimate targets in the ongoing resistance against American and Israeli aggression.
In a statement posted on his official X account on Sunday, Iran's Parliament Speaker Mohammad Bagher Ghalibaf emphasized Iran's resolve to defend its sovereignty and people against continued US aggression, which has resulted in immense suffering for Iranians through sanctions, covert operations, and wars.
"Alongside military bases, those financial entities that finance the US military budget are legitimate targets," the Parliament Speaker stated.
He condemned US Treasury bonds as instruments "soaked in Iranians' blood," saying that purchasing or holding such bonds equates to directly supporting attacks on Iranian lives and territory.
"Purchase them, and you purchase a strike on your HQ and assets," he warned.
Ghalibaf underscored Iran's ...
In response to threats by US President Donald Trump about hitting Iran’s power plants, the Intelligence Service of the Islamic Revolution Guards Corps (IRGC) says critical technology centers beyond the region will be targeted within 48 hours.
The Intelligence Service said in a post on X on Sunday that since February 28, Iran’s armed forces have managed to stabilize the Strait of Hormuz, forcing the United States to evacuate its bases in the region, and damage and destroy technological centers of the Israeli regime.
From now on, the Service stated, Iran’s armed forces also have an eye on extra-regional technological and political targets associated with the Islamic Republic’s enemies.
Trump yesterday threatened that Iran’s power infrastructure would be bombed if the Strait of Hormuz is not opened within 48 hours.
Iran has declared that the strategic waterway is open to those who do not stand on the side of the Islamic Republic’s enemies. It has also warned of extra-regional ...
In response to threats by US President Donald Trump about hitting Iran’s power plants, the Intelligence Service of the Islamic Revolution Guards Corps (IRGC) says critical technology centers beyond the region will be targeted within 48 hours.
The Intelligence Service said in a post on X on Sunday that since February 28, Iran’s armed forces have managed to stabilize the Strait of Hormuz, forcing the United States to evacuate its bases in the region, and damage and destroy technological centers of the Israeli regime.
From now on, the Service stated, Iran’s armed forces also have an eye on extra-regional technological and political targets associated with the Islamic Republic’s enemies.
Trump yesterday threatened that Iran’s power infrastructure would be bombed if the Strait of Hormuz is not opened within 48 hours.
Iran has declared that the strategic waterway is open to those who do not stand on the side of the Islamic Republic’s enemies. It has also warned of extra-regional ...
