Forwarded from Gold Telegraph
CHANGE IS IN THE AIR? 🤔
The U.S. dollar was crowned the reserve currency in 1944 under the Bretton Woods Agreement.
In 1971, Nixon "temporarily" ended the dollar's convertibility to gold.
From the 1970s to the 1990s, the Treasury directed the Federal Reserve to stabilize the dollar through market interventions.
In 2008, the Federal Reserve introduced quantitative easing, accelerating the erosion of purchasing power as central banks pursued wealth effects over currency stability.
As global debt climbs to $315 trillion and central banks cling to easing as their solution, the dollar's fragility becomes more clear by the day.
The financial system is increasingly weaponized, and the world is watching. The stakes have never been higher.
This is why international monetary system reform is beginning to unfold, with the next 24 hours poised to shape its direction.
We are all witnessing history.
Read: https://x.com/goldtelegraph_/status/1853971524224794636?s=46
The U.S. dollar was crowned the reserve currency in 1944 under the Bretton Woods Agreement.
In 1971, Nixon "temporarily" ended the dollar's convertibility to gold.
From the 1970s to the 1990s, the Treasury directed the Federal Reserve to stabilize the dollar through market interventions.
In 2008, the Federal Reserve introduced quantitative easing, accelerating the erosion of purchasing power as central banks pursued wealth effects over currency stability.
As global debt climbs to $315 trillion and central banks cling to easing as their solution, the dollar's fragility becomes more clear by the day.
The financial system is increasingly weaponized, and the world is watching. The stakes have never been higher.
This is why international monetary system reform is beginning to unfold, with the next 24 hours poised to shape its direction.
We are all witnessing history.
Read: https://x.com/goldtelegraph_/status/1853971524224794636?s=46
Forwarded from Gold Telegraph
In my conversation with Judy Shelton, we explored why reform of the international system is needed.
She says it would be powerful if the US issued a treasury instrument that includes the gold convertibility of the dollar at maturity.
Watch here: https://x.com/goldtelegraph_/status/1853977582485799195?s=46
She says it would be powerful if the US issued a treasury instrument that includes the gold convertibility of the dollar at maturity.
Watch here: https://x.com/goldtelegraph_/status/1853977582485799195?s=46
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Gold Telegraph ⚡ (@GoldTelegraph_) on X
In my conversation with Judy Shelton, we explored why reform of the international system is needed.
She says it would be powerful if the US issued a treasury instrument that includes the gold convertibility of the dollar at maturity.
Watch here: https:…
She says it would be powerful if the US issued a treasury instrument that includes the gold convertibility of the dollar at maturity.
Watch here: https:…
Forwarded from Goldilocks - QFS Conversations ™ (Official Page)
The IFRS will affect foreign currency exchange in 2025 due to the IASB's amendments to IAS 21:
Effective date
The amendments are effective for annual reporting periods beginning on or after January 1, 2025, but earlier application is permitted.
Guidance
The amendments provide guidance on how to determine if a currency is exchangeable and how to determine the exchange rate when it is not.
Disclosures
The amendments require companies to disclose information to help users understand the impact of a currency not being exchangeable. This information may include the nature of the impact, the spot exchange rate used, and the estimation process.
Relevance
The amendments are intended to improve financial reporting and support economic decisions.
The amendments apply to entities that have transactions or operations in a foreign currency that is not exchangeable into another currency.
Watch the water.
© Goldilocks
https://viewpoint.pwc.com/dt/gx/en/pwc/industry/industry_INT/industry_INT/corporate_treasury__1_INT/ifrs-accounting-standards/a-foreign-currency.html#pwc-topic.dita_5a68c343-015b-42c8-9c03-76059dcba7c5
Effective date
The amendments are effective for annual reporting periods beginning on or after January 1, 2025, but earlier application is permitted.
Guidance
The amendments provide guidance on how to determine if a currency is exchangeable and how to determine the exchange rate when it is not.
Disclosures
The amendments require companies to disclose information to help users understand the impact of a currency not being exchangeable. This information may include the nature of the impact, the spot exchange rate used, and the estimation process.
Relevance
The amendments are intended to improve financial reporting and support economic decisions.
The amendments apply to entities that have transactions or operations in a foreign currency that is not exchangeable into another currency.
Watch the water.
© Goldilocks
https://viewpoint.pwc.com/dt/gx/en/pwc/industry/industry_INT/industry_INT/corporate_treasury__1_INT/ifrs-accounting-standards/a-foreign-currency.html#pwc-topic.dita_5a68c343-015b-42c8-9c03-76059dcba7c5
Forwarded from Goldilocks - QFS Conversations ™ (Official Page)
IAS 21, or The Effects of Changes in Foreign Exchange Rates, is an International Accounting Standards Board (IASB) standard that provides guidance on how to account for foreign currency transactions and operations in financial statements:
Functional currency
Determines the currency in which an entity records and measures its transactions. This is based on the primary economic environment in which the entity operates.
Foreign currency transactions
Generally recorded using the spot conversion rate to the functional currency on the date of the transaction.
Financial statement translation
Translates financial statements of a foreign operation into the entity's functional currency. If the presentation currency is different from the functional currency, the entity translates the financial statements into the presentation currency.
IAS 21 is important because it addresses how entities can account for foreign currency transactions and operations, which can include:
Buying goods from international suppliers and paying in foreign currency
Having a foreign operation, such as a subsidiary, joint operation, or association venture
Presenting financial statements in a foreign currency other than the entity's own
This does not mean that exchange rates are going to change January 1, 2025. It does mean that new price pressures are about to begin.
Watch the water.
© Goldilocks
https://www.ifrs.org/issued-standards/list-of-standards/ias-21-the-effects-of-changes-in-foreign-exchange-rates/#:~:text=IAS%2021%20prescribes%20how%20an,from%20the%20entity's%20functional%20currency.
Functional currency
Determines the currency in which an entity records and measures its transactions. This is based on the primary economic environment in which the entity operates.
Foreign currency transactions
Generally recorded using the spot conversion rate to the functional currency on the date of the transaction.
Financial statement translation
Translates financial statements of a foreign operation into the entity's functional currency. If the presentation currency is different from the functional currency, the entity translates the financial statements into the presentation currency.
IAS 21 is important because it addresses how entities can account for foreign currency transactions and operations, which can include:
Buying goods from international suppliers and paying in foreign currency
Having a foreign operation, such as a subsidiary, joint operation, or association venture
Presenting financial statements in a foreign currency other than the entity's own
This does not mean that exchange rates are going to change January 1, 2025. It does mean that new price pressures are about to begin.
Watch the water.
© Goldilocks
https://www.ifrs.org/issued-standards/list-of-standards/ias-21-the-effects-of-changes-in-foreign-exchange-rates/#:~:text=IAS%2021%20prescribes%20how%20an,from%20the%20entity's%20functional%20currency.
Forwarded from TifaniesweT 🇨🇭
China’s issuance of US dollar bonds to bolster ties with Saudi Arabia | South China Morning Post
https://www.scmp.com/economy/china-economy/article/3285363/chinas-issuance-us-dollar-bonds-bolster-ties-saudi-arabia
https://www.scmp.com/economy/china-economy/article/3285363/chinas-issuance-us-dollar-bonds-bolster-ties-saudi-arabia