CompleXCountries’ Post

Check out our latest market update on Argentina's new monetary scheme and its impact on the FX gap. Discover how strategic interventions and fiscal discipline are shaping the future of Argentina's exchange rate environment. https://lnkd.in/g4veB_mZ #argentina #ArgentinaEconomy #ArgentinaCentralBank #cepo #fx

Sterling's momentum in the currency markets cannot be sustained by higher UK interest rates alone. While rate hikes can make a currency more attractive by offering better returns on investments, the broader economic context also plays a crucial role. For sterling, factors such as economic growth prospects, political stability, and investor confidence are equally significant. The UK's economic performance, trade relationships post-Brexit, and government policies must align to create a stable environment that supports the currency's strength. Without these complementary factors, the impact of higher interest rates may be limited, leading to only short-term gains rather than sustained momentum. JKV Global Markets Ltd. www.Jkvglobal.com #jkvglobal #forextrading #tradingcompany #forex #forextrader #forextrading #forexsignals #forexlifestyle #forexlife #forexmarket #forexsignal #forextrade #tradeforex #forexprofit #forexmoney #forexeducation #forexsignalservice #india #uae #forexnews

What really matters for assessing the state of a country's economy and the wealth of its society is not looking at the currency. This is a mistake. What matters is the quality and quantity of its contingent assets. Whether the currency maintains more or less value, unless it depreciates sharply, is not the issue under normal conditions. The problem is the quality and quantity of contingent assets in the hands of the government, businesses, and citizens. And also their levels of productivity

Oh, look at that! Moody's just dropped some wisdom on Argentina's government about how to loosen the grip of currency controls by 2025. Because, you know, who doesn't love a good window of opportunity? They mention a strong dollar might help with a "slight" adjustment of the exchange rate—because "slight" means it's totally manageable, right? But, of course, there are still risks and challenges galore when it comes to lifting restrictions and dealing with debt payments. Check out the enlightening details in our latest blog post. Spoiler: it's a rollercoaster of economic forecasts! https://ift.tt/BLeazCX

Join us as I share my thoughts on some of the #CBN measures to deal with the current exchange rate crisis in #Nigeria! #Andersen #MonetaryPolicy #ExchangeRate #NigeriaEconomy #FixedExchangeRateRegime #FloatingExchangeRateRegime #Business #CEO #CFO #Inflation #EconomicGrowth

As has been the standard since ZIRP: different markets show very different changes in risk premia to the same event. With the US presidential election equities went wild while fixed income was muted and currencies followed equities. As a reminder, freely floating currencies move medium and long term based on interest rates differentials. Assuming there is such a thing as the stochastic discount factor, we should take all of this together and not interpret markets separately. Together, markets moved as if the tariffs discusssd throughout his campaign won’t really happen. If tariffs do happen, risk premia moved in entirely the wrong direction. Rates should have popped up more to handle near and medium term inflation, the long dated curve should be much steeper with the dollar weakened and equities dropping. And one thing you learn over time in this business is that going against the market on a macro basis is very difficult, if not outright foolish. https://lnkd.in/ePknDENc

A softening services sector saps strength from the dollar. Read the full report: https://lnkd.in/eJzkG299   #fx #stocks #fxmarkets #markets #economy #forex #currency #recovery #recession #federalreserve #biden #dollar #euro #inflation #dollar #spending #eu #sterling #pound #budget #currency #currencies #BoE #inflation #gdp #USD #ukeconomy #banking #ECB #TheFed #cpi #debtceiling #ratehikes #fomc #fca   Image Source: Reuters

The benchmark US Treasury yields already corrected lower from the highs the past week, allowing the government to slightly reduce borrowing costs for the issuance. It also reflects increased confidence of global investors on the government’s credit fundamentals and also to effectively lengthen its foreign debt maturities and better manage forex risks. https://lnkd.in/gfAaQiB3

Demand for U.S. Banknotes at Home and Abroad: A Post-Covid Update This work reviews developments in demand for U.S. currency over the past few decades with a focus on developments since early 2020. In addition, it revisits the question of international demand: the author presents the raw data available for measuring international banknote flows and updates on indirect methods of estimating the stock of currency held abroad. These methods continue to indicate that a large share of U.S. currency is held abroad, especially in the $100 denomination.