The Ukrainian Russian War caused tension in Europe and could allow capital to flow back to the United States.
The United States is far away from the battlefield. The US dollar should be the most suitable product for investment,
, but the actual situation is indeed a bit different.
First of all, the world is selling US debt .
In addition to China, Russia, including the United Kingdom, Ireland , France, Brazil , Canada, South Korea, Australia, Philippines , Thailand, Kuwait , Italy, Poland and Iraq , etc., 12 countries are also selling varying numbers of US debts.
Reason:
Ukraine-Russian War, economic sanctions , energy shortage has led to changes in many industrial chains. Anyone or country is more inclined to have cash on hand when encountering risks. This is also a modern company must have cash flow management .
In addition to the importance of cash flow , the risk of war has led countries to tend to hoard materials. Therefore, even if the U.S. bond rate hike is bullish, many people still sell it for US dollars and then use US dollars for materials.
For example, China has hoarded a large amount of hard currency such as grain and oil, and has continuously purchased gold.
The increase in cash and hoarding of materials, coupled with the decrease in circulation, will inevitably lead to inflation .
So from this wave of economy, the US dollar has not taken much advantage.
Federal 's continued interest rate hike will have a great effect in peacetime, and the results will be very little in the war years.
The latest report is
September 16, US stocks opened low and closed low, and the three major indexes closed down collectively. The Nasdaq fell 1.43%, the S&P 500 fell 1.13%, and the Dow fell 0.56%. Adobe fell nearly 17%, after announcing its acquisition of Figma for $20 billion in cash and stock. Most of the large-scale technology stocks fell, Microsoft fell by more than 2%, Apple , Amazon , Google fell, and Facebook fell by more than 1%.
What happened to the stock plummeting?
During the virus period, the United States has 5 trillion US dollars in 38 months, and
Naturally, some of this money has entered its own stock market. The rise in stocks not only means that many Americans have money to consume, but also means that they can attract more retail investors to join.
But after all, it is the money printed, not the real value output of these industries. Stocks have moisture. The sharp drop in
is to squeeze out moisture appropriately.
The most important thing about the stock price plummeted is that this does not mean that the United States will lose certainly. I am afraid that the money of retail investors abroad investors is lost.
So since your country sells US debt and plays with US dollars and stocks up on supplies, don’t blame the US dollar for playing stocks and cutting the leeks of your people.
In this way, the governments of various countries are no longer optimistic about the US dollar, and now the US dollar offends a large number of retail investors.
US dollar is indeed under a lot of pressure.
What’s more important is whether there are still people who are really willing to play with the US dollar
On September 8, the yen plummeted again, hitting a new low against the US dollar, falling below the 144 mark for the first time since 1998. Since March 2022, it has fallen 24%, exceeding the largest annual decline set in 1979. This shows that as long as the Federal Reserve continues to raise interest rates, the yen has greater room for decline.
yen fell, giving blood transfusions to US export materials. A large number of investors were not optimistic about the large outflow of yen
According to data released by the Bank of Japan on September 7, in the two weeks ended September 2, a total of 1646.2 billion international funds quietly withdrew from Japanese financial market , of which 1240.2 billion yen foreign capital was withdrawn from the Japanese stock market, which also means that in the past two weeks, a total of 1.65 trillion international funds have been withdrawn from the Japanese stock market and bond market.
On September 15, The State Administration of Foreign Exchange announced the data on bank foreign exchange settlement and sales and bank customer-related foreign payments in August. Statistics show that in August, banks settled US$233.5 billion and sold US$208.4 billion. From January to August this year, banks had accumulated a total of US$178.27 billion in foreign exchange and sold a total of US$167.33 billion in foreign exchange.
Decided in US dollars, in August, banks' foreign-related income on behalf of customers was US$561.9 billion and foreign payments were US$550.6 billion.In the first eight months of this year, banks' cumulative foreign-related income on behalf of customers was US$423.62 billion, and cumulative foreign payments were US$415.27 billion.
As for the characteristics and changes in my country's foreign exchange revenue and expenditure situation in August, Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, said that in August, my country's foreign exchange market showed strong resilience, and bank foreign exchange settlement and sales and foreign-related revenue and expenditure were both surpluses. In August, the surplus of foreign exchange settlement and sales of banks was US$25 billion, and the surplus of foreign revenue and expenditure in non-bank sectors such as enterprises and individuals was US$11.3 billion, both higher than the monthly average since this year. #Onshore RMB exchange rate against US dollar fell below 7#
This contest between China and the United States was sanctioned by various technologies, trade, financing, and various provocations. After the virus, I seemed to see a glimmer of hope, that I had an independent economic system and strong ability to control and stabilize, which sometimes brought unexpected gains. #What are the impacts of RMB exchange rate breaking "7"#
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