Currencies Markets Spotlight: FX, the USD Hegemony and More

Currency Markets Outlook, Fiat vs Credit Money and USD's Global Role

From fundamental questions about the future of our current monetary system, based on fiat and, in part, credit money, to detailed outlooks of FX markets and new analysis on the dominant role of the U.S. dollar in the world's economy, the below section of insights is designed to provide professional investors with what they need to navigate today’s global currency markets.

Fiat vs Credit, CBDC, Stablecoins, and Crypto (Global Risk Institute, 2022)

Throughout history, civilisations have used various currencies to trade and store value and as measures of account. What will the future hold for the current fiat-based currencies?

Yen's Plummet Puts Bank of Japan in a Bind (Capital Group)

For compliance reasons, this paper is only accessible in certain geographies

The Bank of Japan must change its monetary policy stance in order to protect the yen from plummeting. However, a more hawkish position may be a drag on the Japanese economy.

Currency Quarterly: Q2 2022 (Insight Investment)

For compliance reasons, this paper is only accessible in certain geographies

As the world's largest and most important central bank – the U.S. Federal Reserve – turns hawkish, how will a stronger U.S. dollar affect other currencies?

Currency Hedging: Managing cash flow exposure (Harvard Business School, 2022)

How can FX derivatives be successfully employed in hedging the risks of foreign currency fluctuations that can impact the value of cashflows? Here are five ways to do it.

The U.S. Dollar’s Global Roles: Revisiting where things stand (FRBNY, 2022)

What would it take to reduce the international influence of the world's reserve currency, the U.S. dollar? Technology? Geopolitics? Or maybe a new type of economic system?

The Link Between Cryptocurrency and Financial Markets (Yale University, 2022)

Reserve-backed stablecoins are the crucial link between cryptocurrencies and financial markets. Currency markets are becoming more than just FX with the advent of private money.

What Drove the Euro to 20-Year Low Against the Dollar? (CME Group, 2022)

What has been driving the recent fall of the Eurozone currency against the greenback, and can the euro recover? CME Group provides an answer.

Will the Dollar Surge in the Second Half of 2022? (OMFIF, Jul 2022)

The exact direction of the U.S. dollar is impossible to predict. Nevertheless, whether the greenback goes up or down, it has implications for the rest of the world.

Currency Effects on Private Market Portfolios (Hamilton Lane, 2022)

Investors in private markets do not need to worry so much about the price volatility of these assets. However, currency fluctuations remain a factor that needs to be accounted for.