Author: Andrew Martin

A business journalist, offers expert insights into global trade, technology, corporate affairs, cryptocurrencies, and emerging markets. Stay ahead with the latest industry developments and investment opportunities, guided by Andrew's knowledgeable perspectives.
Is the US Dollar Losing Its Global Grip? Central Banks Are Gradually Moving Away
Global Economic Outlook

Is the US Dollar Losing Its Global Grip? Central Banks Are Gradually Moving Away

The US dollar has long been considered the cornerstone of global forex reserves, but recent trends indicate a subtle yet significant shift. According to the International Monetary Fund (IMF), the dollar's share in these reserves has fallen from over 70% in 2000 to about 55% by the last quarter of 2023. This reduction, described as "stealth erosion" by the IMF, marks a notable change in the global financial landscape. While the dollar remains the predominant currency in the reserves of the world's central banks, its dominance is gradually being challenged. Non-traditional reserve currencies, such as the Australian dollar, Canadian dollar, Chinese renminbi, South Korean won, Singaporean dollar, and various Nordic currencies, are gaining traction. According to the IMF data, this shift is ...
Golden Break: Why China’s Central Bank Stopped Buying Gold
Global Economic Outlook

Golden Break: Why China’s Central Bank Stopped Buying Gold

In an unexpected move, China's central bank has paused its gold buying spree, halting an 18-month purchasing streak. This decision comes after gold prices surged to record highs earlier this year, driven by global geopolitical tensions and economic uncertainties. For the first time in over a year and a half, China's gold holdings remained unchanged in May, signaling a break from their aggressive acquisition strategy. The People's Bank of China (PBOC) has been a major player in the gold market, significantly influencing prices. However, with gold reaching such high prices, even the PBOC has decided to take a step back. On Friday, official data confirmed that China's gold reserves did not increase in May, marking the end of their continuous purchasing period. This pause could put down...
Sberbank CEO Warns of Overheated Russian Economy as War Continues
Global Economic Outlook

Sberbank CEO Warns of Overheated Russian Economy as War Continues

Russia's economy is "definitely and strongly overheated," according to Herman Gref, the CEO of Sberbank, Russia's largest bank by assets value. According to TASS news report, Gref made these remarks while speaking in parliament, highlighting that the current production capacity has reached a historically high level of 84%. He emphasized that it is "impossible" to exceed this production capacity and produce more, signaling significant strain on the economy. Despite the West's sweeping sanctions, Russia's economy has shown a remarkable resilience, with a reported GDP growth of 3.6%. However, this apparent robustness is primarily driven by wartime activities, which generate demand for military goods and services, along with subsidies and sharp policy-making strategies. These factors creat...
China’s Push to Globalize the Yuan: A Shield Against Potential Sanctions
Global Economic Outlook

China’s Push to Globalize the Yuan: A Shield Against Potential Sanctions

In a rapidly changing geopolitical landscape, China is accelerating efforts to promote the use of the yuan globally. The driving force behind this initiative is not to challenge the dominance of the US dollar outright, but to safeguard against the potential impact of Western sanctions, particularly in the event of geopolitical conflicts such as those surrounding Taiwan. Zoe Liu, a fellow for China Studies at the Council on Foreign Relations, emphasized this perspective in a recent article published on the Official Monetary and Financial Institutions Forum (OMFIF) website. Liu contends that China's strategies to develop an alternative financial system are currently defensive rather than offensive. “China's strategies to develop an alternative financial system are defensive rather than o...
Singapore Airlines Staff Hit Jackpot with Massive Bonuses Following Record-Breaking Profits!
Financial Analysis

Singapore Airlines Staff Hit Jackpot with Massive Bonuses Following Record-Breaking Profits!

Singapore Airlines (SIA) is making headlines with a generous bonus payout to its staff, rewarding them with nearly eight months' worth of salary. According to Bloomberg, this comes after the airline reported a record net profit of $1.99 billion for the last fiscal year, a significant increase of 24% from the previous year. Sources revealed to Bloomberg that the bonus, almost eight months of salary, reflects SIA’s exceptional performance. This record profit marks the second consecutive year of soaring financial results for the airline, which is one of only ten carriers globally rated five stars by Skytrax. SIA’s financial report highlighted a net profit of 2.68 billion Singapore dollars ($1.99 billion), up from the 2022-23 fiscal year's previous high. The airline noted that demand re...
Gold Prices Surge as Central Banks Diversify Away from US Dollar
Global Economic Outlook

Gold Prices Surge as Central Banks Diversify Away from US Dollar

The prices of gold are heading toward their historical highest record, fuelled by huge purchases from central banks around the world. In fact, a lot of central banks are in a race to transfer their assets from the US dollar into gold, especially those countries which are already playing buddy-buddy with China. They see it as a politically neutral and secure asset — invulnerable to sanctions. Gold prices have rallied in the last couple of weeks on heightened buying by central banks, with the rise showing an expanding use of gold as a safeguard in global politics. The importance of the Gold at the moment, globally, was explained by Gita Gopinath, the deputy managing director of the International Monetary Fund, in her address last week. "After several shocks of a COVID-19 nature and no...
Russia’s War Economy: Putin Positions Economist as New Defense Minister
Global Economic Outlook

Russia’s War Economy: Putin Positions Economist as New Defense Minister

Russian President Vladimir Putin has caught everyone by surprise with the appointment of a civilian economist, Andrei Belousov, to the post of defense minister. It comes in the first week of Putin's next six years as president following his inauguration last Tuesday. Belousov, 65 years old, has also earlier taken the position of deputy prime minister and is being appointed to replace Sergei Shoigu, Putin's old ally. The Russian parliament remains yet to clear these appointments, but this is just a formality as the parliament will smoothly pass all the proposed amendments as Putin has a tight noose around the government. The spokesman for the Kremlin, Dmitry Peskov, spoke of innovation as a key part of modern military strategies and said that Belousov's education as an economist ...
Financial Analysis

Federal Bank Regulator Faces Serious Workplace Issues, Report Finds

A recent independent investigation has exposed serious problems at the Federal Deposit Insurance Corporation (FDIC), highlighting a workplace atmosphere described as "patriarchal" and "insular." This investigation was carried out by the law firm Cleary Gottlieb Steen & Hamilton and it uncovered a number of troubling practices within the FDIC. Released on Tuesday, the 234-page report reveals how the FDIC has been mishandling harassment complaints. Often, people who did something wrong were just moved to different parts of the organization or even got better jobs. This situation was first brought to light by a story in The Wall Street Journal and has now been confirmed by the detailed investigation. The law firm started looking into these issues after setting up a hotline in mid-J...
Chinese Leader Xi Jinping Visits France Amid EU Tensions and Upcoming Elections
Global Economic Outlook

Chinese Leader Xi Jinping Visits France Amid EU Tensions and Upcoming Elections

NChinese President Xi Jinping has landed in France, marking the beginning of his European Union tour, a trip that comes at a critical time as the EU gears up for significant elections. Over the next few days, Xi is set to meet with French President Emmanuel Macron and other European leaders, aiming to smooth over some of the rough patches that have recently emerged in China-EU relations. During his two-day stay in France, Xi Jinping's agenda is packed. As reported by Bloomberg via French news outlet La Tribune Dimanche, Macron is eager to discuss several key issues, including trade imbalances and environmental concerns. Macron emphasized the need for an 'update' in the France-China relationship, highlighting that China's massive exports to Europe need addressing, especially in the gree...
Shift in U.S. Job Creation: A Move from Coastal Cities to Sunbelt and Midwest
Global Economic Outlook

Shift in U.S. Job Creation: A Move from Coastal Cities to Sunbelt and Midwest

In a significant shift in the American job market, new employment opportunities are increasingly found not in the traditional economic hubs of the coasts but in the Sunbelt and Midwest regions. This change, outlined in a recent analysis by the Economic Innovation Group (EIG), highlights how skyrocketing housing costs in cities like San Francisco, New York, and Boston are driving jobs to areas with more affordable living costs. According to the EIG report, cities such as Gainesville, Georgia, and Hilton Head Island, South Carolina, are now leading in job creation, overtaking the historically dominant coastal metropolises. This marks a stark departure from past trends where cities like Los Angeles and Seattle saw rapid job growth. Now, places in the Midwest and inland cities of the North...