Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. HOMEPAGE

China is pushing back on the US dollar's dominance but analysts say there's no real threat to the greenback

Welcome back readers. I'm Phil Rosen, coming to you from New York — and today I'm taking you through the fast-paced and ongoing story that is China's push to challenge the US dollar

Advertisement

It's the start of a four-day week — let's not waste any time. 

If this was forwarded to you, sign up here. Download Insider's app here.

1. China's been cooking up fresh challenges to the US dollar's role in international trade, starting with the BRICS countries' plan for a global reserve currency.



A screen shows Chinese President Xi Jinping delivering a keynote speech at the opening ceremony of the Boao Forum for Asia via video link, at a media centre in Boao, Hainan province, China April 21, 2022. REUTERS/Kevin Yao
Chinese President Xi Jinping seen delivering a speech at via video link at a media centre in Boao, China, on April 21, 2022. REUTERS/Kevin Yao

BRICS includes Brazil, Russia, India, China, and South Africa — and Vladimir Putin says they're all teaming up to make a new currency basket.

Advertisement

At the same time, The People's Bank of China announced it was building a yuan currency reserve with the Bank for International Settlements, along with five other nations.

Some 85% of central banks have invested or are considering investing in the yuan, UBS found  — though it's still a long way off top-dog dollar in their holdings.

While investors may fret about the erosion of dollar dominance, analysts told Insider the demise of the greenback is not likely. After all, this isn't the first time the dollar has faced threats from the yuan

"I hear this story all the time," one strategist said. "There is no threat in the foreseeable future to the dominance of the US dollar. It is the currency of the largest economy, used in the largest and deepest capital markets in the world, and is freely convertible."


Kremlin Moscow
Mordolff/Getty Images

2. US stock futures fell early Tuesday, as fears about economic growth appeared to outweighed previous optimism about the US possibly relaxing tariffs on China. Meanwhile, bitcoin was trading below $20,000. Here are the latest market moves.

Advertisement

3. On the docket: Ubisoft Entertainment S.A., Marks & Spencer plc, and more all reporting. 

4. Rick Rieder, Rob Arnott, and David Kelly all said the Fed can't beat inflation with rate hikes. The three Wall Street heavyweights, who oversee $5 trillion combined, shared what investors should buy as prices rise — and why the central bank has to fight high prices indirectly

5. The CFTC charged a bitcoin firm with operating the "largest ever fraud" involving the cryptocurrency. Mirror Trading International, per the CFTC's statement, defrauded investors out of $1.7 billion. Investors had poured in 29,421 bitcoins as the company advertised itself as a bitcoin trading pool. 

6. Vauld becomes the latest crypto platform to suspend withdrawals. The crypto lender, backed by Peter Thiel and Coinbase, is exploring a possible restructuring after "volatile market conditions" led customers to withdraw more than $197.7 million from the platform since June 12. It comes as Celsius, another troubled crypto lender, is reportedly cutting 150 jobs

Advertisement

7. For the first time ever, the US is sending more liquefied natural gas to the EU than Russia through pipelines. The Kremlin has been cutting flows in recent weeks for the Nord Stream pipeline. As an IEA official tweeted: "The drop in Russian supply calls for efforts to reduce EU demand to prepare for a tough winter."

8. An investment research CEO who called the declines of Coinbase, Shopify, and Snap warned that other stocks are about to hit $0. As the Fed moves to tighten policy in the coming months, "zombie companies" are most at risk, warned David Trainer. He said these three stocks, including a popular fitness brand, could end up being worthless

9. Five Wall Street experts explained why the carnage likely isn't over for the stock market. Strategists from Goldman Sachs, Morgan Stanley, Bank of America, and Societe Generale all see more downside ahead. Here's what you want to know.


Netflix
Markets Insider

10. The S&P 500 just had its worst first half since 1970 — and Netflix led the pack of poorest performers. The streaming service had a negative-71% performance in the first six months of 2022. Here's a list of the other nine worst-performing stocks in the first half of the year.


Keep up with the latest markets news throughout your day by checking out The Refresh from Insider, a dynamic audio news brief from the Insider newsroom. Listen here.


Curated by Phil Rosen in New York. (Feedback or tips? Email prosen@businessinsider.com or tweet @philrosenn).

Advertisement

Edited by Max Adams (@maxradams) in New York and Hallam Bullock (@hallam_bullock) in London. 

Markets Newsletter
Advertisement
Close icon Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.

Jump to

  1. Main content
  2. Search
  3. Account