Turkish President Recep Tayyip Erdogan has called for a wider use of national currencies in mutual trade with other countries as a necessary step to move away from the dollar and accordingly dodge US pressures.
The International Monetary Fund said on Saturday its members pledged to refrain from competitive currency devaluations and step up dialogue on trade, as escalating trade frictions and higher borrowing costs threatened to knock global growth.
The US Dollar finished lower against a basket of major currencies last week after an easing of tensions over the trade dispute between the United States and China encouraged investors to lift dollar hedges. The Reserve Bank of Australia (RBA) warned on risks to its outlook from US-China trade tensions and weak wages, while reaffirming its next interest rate move would likely be a hike. The New Zealand Dollar was boosted after data showed its economy grew at a faster pace than expected in the second quarter. The Bank of Japan (BoJ) reiterated last Wednesday that it would keep interest rates extremely low “for an extended period,” holding to forward guidance it first introduced in July.
Iran has removed the US Dollar from its official currency rate reporting platform and replaced it with China’s Yuan in an effort that the media in Tehran say could be a key step toward ditching the greenback in trade.
When China Shanshui Cement embarked on a borrowing spree in 2011, its managers could not have known that they had set in motion a chain of events that would lead to the company’s default last week on Rmb2 billion ($315 million) of short-term bonds, in all likelihood setting off a cross-default affecting debts totaling $3 billion.