Argentina’s Economy Ministry has lifted the ban on businesses displaying prices in U.S. dollars alongside peso prices, allowing for flexible exchange rate conversions. Simultaneously, the Central Bank announced that Argentinian debit cards will facilitate payments in both dollars and pesos, bypassing peso conversion for domestic transactions. This dual-currency system, slated for implementation by April 1st, will initially be adopted by select businesses before wider implementation. The changes aim to integrate the dollar more fully into the Argentine economy, though credit cards remain excluded from the immediate changes.
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President-elect Trump issued a threat on Truth Social to impose 100 percent tariffs on BRICS nations—including Russia and China—unless they commit to using the U.S. dollar as their reserve currency and refrain from developing alternative currencies. This follows the BRICS nations’ exploration of “de-dollarization” to reduce reliance on the U.S. dollar for global trade. Trump’s statement expresses confidence in the dollar’s continued dominance, despite economists’ skepticism regarding a successful BRICS alternative. The threat comes amidst ongoing negotiations with Canada and Mexico regarding potential tariffs on their goods, highlighting Trump’s hardline stance on trade.
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President-elect Trump threatened 100% tariffs on nine BRICS nations—Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the UAE—if they undermine the U.S. dollar’s global dominance. This threat follows BRICS nations’ growing efforts towards de-dollarization, driven by concerns over U.S. control of the global financial system. Despite research suggesting the dollar’s dominance remains secure, Trump’s statement reinforces his protectionist stance and willingness to use tariffs as leverage. This action comes after similar threats against Mexico and Canada, highlighting a broader strategy of using economic pressure to achieve political goals.
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The recent news of Russia being hit with new US sanctions and subsequently halting dollar and euro trade on its main bourse has sparked a wave of reactions and speculations. Many Russians, mindful of the historical crashes of the rouble, hold their savings in foreign currencies, but the central bank assures that these deposits are secure. However, trusting the Russian central bank can be a precarious decision. If I had money in Russian banks, I would undoubtedly be anxious to withdraw it before it potentially disappears into thin air. The recent surge in dollar rates at some banks post-sanctions news is not surprising, as it signifies a possible downward spiral for the Russian currency.… Continue reading
John Q. Hosedrinker