Select Language

Trump threatens to regain control of Panama Canal

blockHeadVisual
  1. HOME
  2. Get information
  3. World FX news
  4. Trump threatens to regain control of Panama Canal

World FX news

search
Breaking news

Trump threatens to regain control of Panama Canal

  • X
  • facebook
  • LINE
  • RSS
  • X
  • facebook
  • LINE
  • RSS
New update 2024.12.23 08:46
Trump threatens to regain control of Panama Canal

update 2024.12.23 08:46

US President-elect Donald Trump has demanded Panama reduce fees on the Panama Canal or return it to US control, accusing Panama of charging excessive rates to use the Central American passage, per Reuters. 

Trump also said he would not allow the canal to fall into the "wrong hands," citing possible Chinese control of the passage. However, Panama's President Mulino said on Sunday that Panama's independence was non-negotiable and that China had no control over the canal's administration. He also defended Panama's passage charges, claiming they were not established "on a whim". 

Market reaction

At the time of writing, the US Dollar Index (DXY) was unchanged on the day to trade at 107.80. 

US Dollar FAQs

The US Dollar (USD) is the official currency of the United States of America, and the 'de facto' currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world's reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.

The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.

In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed's weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.

Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.

 

Date

Created

 : 2024.12.23

Update

Last updated

 : 2024.12.23

Related articles

Show more

Writer

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?
No loading Yes loading

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Previous article

prev

ECB's Vujcic: Rate cuts will continue next year

Next article

Trump announces his picks for key positions in the administration

prev

Most viewed

WTI trades with mild positive bias around $69.70-$69.75 area, lacks bullish conviction

West Texas Intermediate (WTI) US Crude Oil prices edge higher for the second straight day on Monday and move away from over a one-week low, around the $68.40-$68.35 region touched on Friday.
New
update2024.12.23 12:45

NZD/USD moves above 0.5650 due to rising odds of Fed keeping rates unchanged in January

NZD/USD extends its gains for the second consecutive day, trading around 0.5660 during the Asian session on Monday.
New
update2024.12.23 12:03

Japanese Yen bulls remain on the sidelines; seems vulnerable against USD

The Japanese Yen (JPY) kicks off the new week on a softer note and remains within striking distance of a five-month low touched against its American counterpart on Friday.
New
update2024.12.23 12:01

USD/INR drifts higher amid bullish US Dollar demand

The Indian Rupee (INR) remains weak on Monday after reaching an all-time low in the previous session.
New
update2024.12.23 11:47

Australian Dollar appreciates as US Dollar remains subdued after a softer inflation report

The Australian Dollar (AUD) steadies following two days of gains on Monday as the US Dollar (USD) remains subdued following the Personal Consumption Expenditures Price Index (PCE) data from the United States (US) released on Friday.
New
update2024.12.23 11:35

Israeli strikes across Gaza kill at least 50 people

Israeli strikes across the Gaza Strip overnight and early Sunday killed at least 50 Palestinians, including at one family's home and a school building, according to Palestinian medical officials.
New
update2024.12.23 10:28

PBOC sets USD/CNY reference rate at 7.1870 vs. 7.1901 previous

On Monday, the People's Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead at 7.1870, as compared to Friday's fix of 7.1901 and 7.2880 Reuters estimates.
New
update2024.12.23 10:15

GBP/USD consolidates in a range around 1.2570 area; upside potential seems limited

The GBP/USD pair kicks off the new week on a subdued note and oscillates in a narrow trading range above mid-1.2500s during the Asian session.
New
update2024.12.23 10:07

Gold Price Forecast: XAU/USD flat lines above $2,600 as traders await fresh catalysts

Gold price (XAU/USD) holds steady near $2,625 during the early Asian session on Monday.
New
update2024.12.23 10:06

EUR/USD rises to near 1.0450 due to rising odds of Fed keeping rates unchanged in January

EUR/USD remains steady following the gains from the previous session, trading around 1.0430 during the Asian hours on Monday.
New
update2024.12.23 09:58

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

arw
  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Line

Line
Facebook

Facebook
X

Twitter
Cancel