Business Currency

The COVID-19 pandemic caused global central banks to take emergency action to support the world’s economies; one such measure was the rapid cut in interest rates to record lows.

The United States Dollar has been the de facto global currency for the better part of the past century. While rhetoric questioning its longevity in this role has been around for decades, the past year has seen more leaders of rapidly emerging economies beginning to question why it still needs to be this way.

The Court of Appeal in England has decided in MUR Shipping BV v. RTI Ltd [2022] EWCA Civ 1406 (27 October 2022) that sometimes a party must accept payment in Euros, even though the contract expressly stipulated payment to be made in US Dollars. Although the case is not about independent undertakings, DCW readers might ask if the decision could have implications for letters of credit and demand guarantees.

The strength of the US currency has amplified already existing headwinds for the world economy. But while central banks have kept up the fight to protect their currencies from depreciation, a USD reversal is something only the Fed will be able to engineer.

The notoriously volatile cryptocurrency market suffered another serious blow earlier this month as FTX, once one of the largest cryptocurrency exchanges in the world, met its rapid end. 

Your Monday coffee briefing from TFG – Trade digitisation: the legal framework that will facilitate efficient trade

In late September the pound fell spectacularly from above $1.12 to a new record low of $1.035 versus the US dollar.

It’s true that the dollar had been appreciating for many months, and the pound was one of the most undervalued currencies of the year, but this was news making headlines and front pages around the world, and it was exclusively a domestic problem.

To learn more about the treasury landscape Trade Finance Global’s (TFG) Annie Kovacevic sat down with Colleen Ostrowski (CO) at Sibos, Amsterdam 2022.  

At what point can a business acknowledge foreign exchange (FX) in their procure to pay (P2P) process, and at what cost?

Cross-border payments are at the core of international finance and economic activity and it have undergone dramatic changes over the past fifty years. 

Among our top stories: Going nuclear – SWIFT ban to hamper Russian trade

When the rouble plummets, where do Russians put their money? TFG’s Marcus Lankford investigates…

Could meaningful action by the US Fed this year see capital attracted back to the US, putting recent Asian emerging markets growth under considerable stress, ponders Ed Arghand, Senior Underwriter, Political and Credit Risk, HDI Global Specialty SE.

In this article, the Bank of England’s Alastair Hughes talks about LIBOR cessation and risk-free rate alternatives

In this article, James A. Fok, author and former HKEX executive, considers how a US Fed rate hike could affect the dollar, relations with China, and social stability