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.
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.
Ministry of Industry, Mine and Trade plans to provide downstream companies with petrochemical feedstocks on the basis of the official exchange rate for the US dollar which is about 42,000 rials, said the secretary of the Association of Petrochemical Industry Corporations.
Iran’s currency plunged to another record low on Sunday, dropping past 100,000 rials to the US dollar following US decision to reimpose sanctions against Tehran after unilateral withdrawal from the Iran nuclear deal in May.
The European Union plans to switch to the euro for oil purchases from Iran, eliminating the US dollar as the two sides work to protect bilateral trade against possible American sanctions, a report said.