Russian central bank governor Elvira Nabiullina says the yuan’s share in Russia’s exports has increased from 0.4 to 34.5 per cent, replacing the US dollar and euro as its ‘primary’ currency for foreign economic activity.
The world has been divesting from the Euro ever since the sovereign debt crisis in 08 and 09. A lack of unified monetary policy is a large factor. However, Europe’s has only accelerated the trend by keeping interest rates low compared to the strong action the Federal Reserve took when inflation became an issue. Europe is now hit with a double whammy of high inflation and low growth. Europes economy is fundamentally weak. Its population is aging towards having a majority of retirees. Retirees don’t spend money on stuff like people in their 20’s 30’s and 40’s. Simultaneously they are dependent upon foreign sources for energy.
The EU simply can’t raise interest rates or they will kill what little growth they have.
The world has been divesting from the Euro ever since the sovereign debt crisis in 08 and 09. A lack of unified monetary policy is a large factor. However, Europe’s has only accelerated the trend by keeping interest rates low compared to the strong action the Federal Reserve took when inflation became an issue. Europe is now hit with a double whammy of high inflation and low growth. Europes economy is fundamentally weak. Its population is aging towards having a majority of retirees. Retirees don’t spend money on stuff like people in their 20’s 30’s and 40’s. Simultaneously they are dependent upon foreign sources for energy.
The EU simply can’t raise interest rates or they will kill what little growth they have.