Washington's use of the dollar as a political tool is backfiring as more and more countries are reducing their holdings of the greenback and switching to other currencies in trade contracts, Russian President Vladimir Putin said on Wednesday.
Iran and Russia have ditched the US dollar and are now carrying out all their transactions in national currencies, as Turkey gradually follows suit, Iran’s Central Bank Governor Abdolnaser Hemmati said Wednesday.
The Chinese yuan fell to its lowest level against the dollar since August 2010 in morning trade on Monday, fueling speculation that Beijing is allowing currency depreciation to counter threatened US tariffs.
The Iranian national currency, the rial, was 118,000 against the US dollar on Sunday which shows a relatively high regain of value compared to months of low that followed the American introduction of crippling economic sanctions against Tehran.
Saudi Arabia is threatening to sell its oil in currencies other than the dollar if Washington passes a bill exposing OPEC members to US antitrust lawsuits, three sources familiar with Saudi energy policy said.
Iran has adequate currency supplies to cover trade, and the rial has stabilized after 'a heavy attack' from the US-led economic sanctions on the Islamic Republic, said the governor of Central Bank of Iran (CBI).
The euro clawed itself off recent lows on Monday as the dollar paused near 18-month highs and traders waited to see whether the U.S. Federal Reserve’s policy meeting this week would calm nerves about slowing global economic growth.
This week, Russian President Vladimir Putin called Washington's sanctions policy a 'colossal strategic mistake' which has only served to undermine the dollar's credibility as a global reserve currency.
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.
Iraq indicated that it has officially removed the US dollar in trade with Iran by announcing a legal limit for passengers to carry along Euros - instead of the customary US Dollars - into the Islamic Republic.