All articles tagged with #currency policy
Tokyo and Washington reportedly coordinated yen-buying to halt the yen’s slide toward multi-decade lows, marking the first joint intervention since 2011, with officials signaling ongoing cooperation through the MOF and Fed facilities as the BOJ kept policy steady amid a widening rate gap with the U.S.
The dollar remains the world’s financial anchor due to the eurodollar network, Fed swap lines, a deep US Treasuries market, and open capital accounts that make dollar-denominated reserves convenient and secure; while rivals push for alternatives and deficits invite political pressure, no credible replacement exists yet—Europe lacks a unified debt market, China keeps capital controls, and network effects keep dollars in demand, ensuring the dollar’s supremacy for now.
The US Mint has stopped producing pennies, leading to shortages in banks and retailers, causing logistical issues, increased costs, and legal complications, with calls for federal guidance on managing the situation.
China is maintaining its defense of the yuan against potential weakness, as the People's Bank of China keeps the daily reference rate for the currency largely unchanged, signaling the importance of yuan stability amid pressure from a strong dollar and negative investor sentiment.