Easwaran Kanason

Co - founder of NrgEdge
Last Updated: January 28, 2018
1 view
Business Trends

At the World Economic Forum in Davos this week, US Treasury Secretary Steven Mnuchin apparently expressed support for a weaker dollar. That was a major surprise. Historically, the US government’s policy has to been to support a strong greenback, given that it is the world’s reserve currency. A flip to support a weak dollar created a wave of alarm, that the US under Trump could be attempting to make its exports more competitive globally. It caps off a series of trade moves that alarmed America’s Asian allies, particularly China, as the US slapped steep new tariffs on Asian goods, from solar equipment to washing machines.

To be fair, the dollar has been in decline against almost all major currencies over the past year. Against the Euro, it has declined by 3.5% over the past month alone, and against the Japanese Yen and Chinese Yuan by 3.3%. Even the messy ongoing Brexit situation did not prevent the pound from gaining to the US, with the dollar sliding by 5.6%. This has contributed to the gains in crude oil prices over January, since oil is denominated in dollars. As traders moved to sell-off the dollar after Mnuchin’s comments, crude oil prices leapt – touching US$71/b for Brent and US$66/b for WTI.

Mnuchin later walked back on his comments, but announcements by the Trump administration do point to a preference for the advantages a weaker dollar can bring. For oil, that means stimulating demand – a cheaper dollar means cheaper oil in relative terms, particularly in energy hungry Asia. Will this continue over the rest of 2018? Most central banks are turning hawkish, and while the US Federal Reserve is likely to follow suit, stubbornly weak inflation in the US could tie the Fed’s hands in interest rate hikes. 

Then there is also the prospect of an accelerating trade war with China, which could retaliate with currency manipulation, or a collapse of the NAFTA, something Canada is apparently already anticipating. Any one of these could send the dollar lower. For oil prices, that’s bullish. Supply/demand fundamentals are good – the US crude just declined for a record 10th week, while demand is perking up – and any weakening in the dollar will only amplify gains.

Is this a turning point for the rise of the Petroyuan? Back in 2012, China planned to price oil in yuan using gold-backed futures contracts in Shanghai. China’s efforts to undermine the dollar’s global dominance is not a new story however it is also not in China’s interest to devalue $1.1 trillion of  US Treasuries it currently still holds. Could the world leading oil importer have a central role afterall in the pricing of oil in the future? 

Russia, Middle East and other selected Asian countries already accept payment in yuan for trade transactions. If Saudi Arabia adopts the yuan for its oil exports that will send a very strong signal to the world of a big shift. More so if China participates in the upcoming Aramco’s IPO, it may just solidify the move towards the yuan.


Read more:
oil price demand supply trading opec 2018 forecast projections dollar petroyuan
2 0

Something interesting to share?
Join NrgEdge and create your own NrgBuzz today

Latest NrgBuzz

Funko Action Figures: Collectible Figurines

Funko Action Figuresare a popular collectible toy that is now being incorporated into the workplace to motivate employees. The action figures have been used as an alternative to the traditional desk calendar or as a prize for top performers. With this type of incentive, employers can expect their employees to feel more motivated and productive.

Many employers have found that Funko Action Figures are a great way to motivate their employees and provide incentives for high performance at work. Funko Action Figures are a popular collectible toy that is now incorporated into the workplace. These small collectibles are given to employees to motivate them. Funko figures were once only available at comic book stores, but now they are being used in offices for this purpose.

The company is called Zappos and they first introduced this idea back in 2009. They gave these figurines to their employees as a way of motivating and rewarding them for their hard work and dedication. Although it’s not very clear why the action figures themselves motivate people, we can see that it has been working well for Zappos as they have continued to use it since 2009. These soft-bodied vinyl figures, often called "Pop!" Figures were originally conceived by Mike Becker and founded by Alan Becker.

The Funko Pop! Action Figure is a line of collectible toys produced by the company Funko LLC. They are typically stylized vinyl figures depicting characters from various media and entertainment. First introduced to the public in 2005, the company was originally founded as a bobblehead company in 1998 and became popular through distribution at chain retailers such as Walmart and Target. The first wave of Funko Pops was based on Disney properties like Mickey Mouse as well as other popular culture icons such as Conan O’Brien and Catwoman.

Funko Action Figures are collectible figurines that often depict pop culture characters. They are often used in the office to motivate employees and provide a sense of community. Funko has established itself as a major player in the toy industry with its trademarked Pop! vinyl figures. This company is taking on new ventures like collecting by introducing Funko Action Figures, for example, Boba Fett from the Star Wars movies. This type of product is sometimes called a 'blind box' because you don't know which figure you're getting until you open it. The Boston-based company, BuzzFeed, has introduced this type of toy into their office to help with team building and morale. The employees at this company seem to have a lot of fun with them.

May, 25 2022
Asset Works - Fleet Management Software

Asset Works FleetFocus fleet management software is a powerful solution designed to help asset- and infrastructure-intensive organizations control costs and streamline operations. By tracking vehicle location and maintenance history, fleet managers can extend the useful life of their fleet and prevent costly downtime. With preventive maintenance scheduling, work order and labor tracking, and parts and inventory tracking, FleetFocus helps fleet managers maximize efficiency while minimizing expenses. As a result, Asset Works fleet management solutions deliver industry-leading value for fleet managers around the world.

Support: [email protected]

May, 24 2022
Where to buy your Gun Parts from?

It is important to know where to gun parts from. There are many places you can buy them from, but it is important to choose the right place so that you get the best quality and service. There are many places where you can buy gun parts from. You can buy them from gun stores, online retailers, and even at a flea market.

One of the best places to buy gun parts from is Always Armed.They have a wide range of products available, they offer great customer service, and they have convenient shipping options.

Buying gun parts can be a difficult task. There are many different types of firearms and there is a huge variety of gun parts. The right place to buy gun parts depends on what you are looking for and what kind of firearm you have.

If you are looking for a specific part, then your best bet is to search online. You can find the part that you need at an affordable price and it will be delivered right to your door. If you want to save time, then this is the best option for you. If not, then your local gun store might be the best option for you because they have many different types of firearms as well as all kinds of other equipment that might come in handy for hunting or shooting sports.

When it comes to buying gun parts, you need to be very careful. There are a lot of scams out there and some companies just want to take your money and never send you the goods. 

May, 20 2022