Outside of the United States, all other financial systems face major constraints on their ability to absorb large financial inflows. That is why geopolitical multipolarity is advancing faster than financial multipolarity, despite the many reasons that investors have to pursue greater diversification.
EUR/USD trades on the back foot on Thursday as the expanding war in the Middle East pushes Oil prices higher and fuels hawkish Federal Reserve (Fed) expectations, boosting demand for the US Dollar (USD). Meanwhile, the European Central Bank’s (ECB) decision to leave interest rates unchanged draws little market reaction. At the time of writing,…
Sebastian Siemiatkowski, CEO and co-founder of Swedish fintech Klarna, gives an interview with CNBC during the company’s initial public offering at the New York Stock Exchange in New York, Sept. 10, 2025. Brendan Mcdermid | Reuters Klarna, the Swedish fintech firm best known for its buy now, pay later offerings, said Monday it applied to…
Preview: RBA to stay in pause and observe mode, TD Securities says ahead of today’s decision !“#$%&‘()*+,–./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !“#$%&‘()*+,–./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}
America was born in war. The American Revolution and subsequent constitution of the newly-formed United States reflected some of the key ideas of liberalism—natural rights, government by consent, and limits on state power. The Revolution, however, was just the beginning of war as part of the American identity. Between 1798 and 2023, the United States…
Federal Reserve Chairman Kevin Warsh testifies during the Senate Banking, Housing and Urban Affairs Committee hearing titled “The Semiannual Monetary Policy Report to the Congress,” in Dirksen building on Wednesday, July 15, 2026. Tom Williams | Cq-roll Call, Inc. | Getty Images June’s Federal Open Market Committee meeting ended with a much shorter statement from…
BRASÍLIA—Investors have no shortage of reasons to diversify away from the United States. America’s public debt is rising, political polarization is deepening, trade policy has become unpredictable, the rule of law is now in doubt, and financial sanctions have encouraged other governments to seek alternatives to the dollar. Yet there has been no great exodus from US markets. The dollar still accounted for 56.8% of allocated foreign-exchange reserves at the end of 2025, and was used in 89.2% of all foreign-exchange trades surveyed by the Bank for International Settlements.