841 The Volatile Crude (2/2)
Since reaching the bottom at the beginning of the year, the price of crude oil per barrel had continued to rise.
The UA economy had long relied on the two pillars of oil and dollar. According to the calculation of the International Monetary Fund, for every 5 dollar increase in oil prices, the global economic growth rate would be cut by about 0.3 percentage points, while the UA economic growth rate may decline by about 0.4 percentage points.
The UA dollar and the price of oil were negatively correlated.
It was precisely because of this that UA had been deliberately promoting the devaluation of oil. As early as 2014, the shale gas revolution made oil production double in three years. Many people subjectively believed that all oil came from the Middle East, but they ignored the fact that the production in the United Arab Emirates was less than that of a state in the UA.
However, even because of this, the oil in the Middle East was cut off due to the impact of the war, and the international oil price took a serious blow.
On September 23, Celestial Trade and Arrow exchanged fire in the northern mountainous area of Madagascar. The dollar has been continuously declining for three days because of the fluctuation of the international crude oil market. Wall Street traders predicted that the probability of a rate hike in September would reach 47%. At the same time, a report from Future Bank had also been placed on Jiang Chen's desk.
”According to the rate hike expectations, the dollar rose slightly and stopped the decline. However, the international crude oil market has not shown any signs of stabilizing. At this time, interest rate hikes have already buried the hidden dangers of the economic crisis.”
”And this economic crisis is destined to be paid by other countries.”
Standing at Jiang Chen's desk, Futures Bank CEO David Smith explained the report to Jiang Chen.
”Does the dollar depreciate?” Jiang Chen pinched the report and fell into his own thoughts.
It came faster than expected.
If the UA dollar depreciated, the interests of Future Group and even the economy of Xin would take the first blow. The appreciation of crude oil would also have an immeasurable impact on the industries of New Malaysia and Ange.
Minerals, food and other things could be produced by Future Group, but oil has been a headache. Xin possessed vast ocean area and rich mineral resources, but it had no oil. And oil happened to be a very important resource in industrial production.
From fuel, plastics, synthetic rubber, even clothes, pharmaceuticals, and food; the fields covered by oil was extensive. It was because of this that oil was used as an important indicator to assess the global economic outlook.
”Are there any good ideas?” Jiang Chen set aside the report and asked David Smith.
”Of course.” Mr. Smith nodded. From his expression, he was obviously prepared.Find authorized novels in Webnovel，faster updates, better experience，Please clickfor visiting.
”I have noticed that Xin is still using the US dollar for settlement, and its resistance to fluctuations in the foreign exchange market is very fragile. If the dollar is devalued significantly, the first to bankrupt is Xin's finance. If the dollar depreciates ten points, Xin's whole year GDP will vanish.
Hearing this, Jiang Chen began to sweat profusely.
[Holy!]
Originally he was planning to wait until the space elevator was built, but now it seemed necessary to bring the plan ahead of schedule!
Sharing the same thought with Jiang Chen, Smith paused for a moment and made his own suggestion.
”With the current population of Xin, it is fully capable of supporting a monetary system. Taking into account the influence of Future Group in the country, I propose that Future Bank along with a number of private banks in Xin establish a institution similar to the Federal Reserve, and issue Xin's own currency!”