{"id":161941,"date":"2019-12-17T00:28:20","date_gmt":"2019-12-17T05:28:20","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=161941"},"modified":"2019-12-16T13:28:52","modified_gmt":"2019-12-16T18:28:52","slug":"u-s-sanctions-boost-demand-for-alternative-currencies","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/12\/u-s-sanctions-boost-demand-for-alternative-currencies\/","title":{"rendered":"U.S. Sanctions Boost Demand for Alternative Currencies"},"content":{"rendered":"
December 17, 2019<\/div>
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By Money Metals News Service<\/b><\/p>\n

Federal Reserve Chairman Jerome Powell\u2019s comments on inflation last Wednesday added fuel to the contra-dollar trade.<\/p>\n

During a press conference following the Fed\u2019s decision to leave interest rates unchanged, Powell said, \u201cIn order to move rates up, I would want to see inflation that’s persistent and that’s significant. A significant move up in inflation that’s also persistent…<\/p>\n

“To move inflation expectations up from where they are, which appears to be a bit below 2%, will not happen overnight.”<\/p>\n

In other words, the Fed won\u2019t be satisfied until consumer prices rise much higher over time.<\/i><\/p>\n

This \u201cweak dollar\u201d policy may come back to bite, though, as the Federal Reserve Note steadily loses credibility as world reserve currency.<\/p>

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Over the weekend, Treasury Secretary admitted as much.<\/p>\n

\u201cPeople don\u2019t have to use the dollar, we have the right to put restrictions on people using the dollar. And over a long period of time, if we\u2019re not careful, people will look at using other currencies,\u201d Mnuchin said Saturday in a CNBC<\/a> interview.<\/p>\n

Despite insisting that \u201cwe are not weaponizing the U.S. dollar,” Mnuchin\u2019s Treasury Department is leveraging the dollar\u2019s privileged status in international trade to impose and enforce economic sanctions against U.S. adversaries. They include North Korea, Venezuela, Iran, and Russia.<\/p>\n

But as CNBC noted, \u201cOfficials in China and Europe have been actively promoting their currencies as substitutes for the dollar when it comes to both reserves and transactions, particularly in the face of expanding U.S. sanctions and protectionist trade policies like tariffs.\u201d<\/p>\n

The central banks of China and Russia are also steadily replacing their sizeable Federal Reserve Note reserves with gold.<\/p>\n

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The Money Metals News Service provides market news and crisp commentary for investors following the precious metals markets.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Money Metals News Service Federal Reserve Chairman Jerome Powell\u2019s comments on inflation last Wednesday added fuel to the contra-dollar trade. During a press conference following the Fed\u2019s decision to leave interest rates unchanged, Powell said, \u201cIn order to move rates up, I would want to see inflation that’s persistent and that’s significant. A significant […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-161941","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161941","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=161941"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161941\/revisions"}],"predecessor-version":[{"id":161946,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161941\/revisions\/161946"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=161941"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=161941"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=161941"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}