Latest news with #SaudiRiyal
CNBC
a day ago
- Business
- CNBC
Could the euro pose a threat to King Dollar?
U.S. President Donald Trump's tariffs regime has sparked volatility in American assets — and European officials are making no secret of wanting the euro to seize upon wavering confidence in the U.S. dollar. The dollar is the world's most commonly held reserve currency, accounting for almost 60% of global foreign exchange reserves and playing an important role in the trade of assets like oil and gold. It also acts as a peg for currencies including the Hong Kong dollar and the Saudi Riyal. In second place, trailing far behind the greenback, is the euro, which makes up around 20% of international FX reserves. The dollar index — which measures the greenback against a basket of major rivals — has fallen by more than 8% since the beginning of the year. This week, European Central Bank President Christine Lagarde said the shifting geopolitical landscape that was driving those moves gave European policymakers an opportunity to raise the euro's status. "Multilateral cooperation is being replaced by zero-sum thinking and bilateral power plays," she said on Monday in a speech at Hertie School in Berlin. "There is even uncertainty about the cornerstone of the system: the dominant role of the US dollar." This, she said, could "open the door for the euro to play a greater international role."Closing that gap was "far from guaranteed," Lagarde noted in her speech, while nevertheless suggesting that the European currency could "earn" greater global influence with the right policy mix. "First, Europe must ensure it has a solid and credible geopolitical foundation by maintaining a steadfast commitment to open trade and underpinning it with security capabilities," she said. "Second, we must reinforce our economic foundation to make Europe a top destination for global capital, enabled by deeper and more liquid capital markets. Third, we must bolster our legal foundation by defending the rule of law — and by uniting politically so that we can resist external pressures." A euro with a raised reserve currency status would bring a plethora of benefits to Europe, Lagarde added, including lower borrowing costs for regional governments, insulation from exchange rate volatility and protections for Europe from sanctions "or other coercive measures." "In short, it would allow Europe to better control its own destiny," Lagarde added. She isn't the only ECB official touting the possibilities for the euro, as confidence in the U.S. wavers. Last week, Isabel Schnabel, a member of the central bank's Executive Board, said the euro area could become a safe haven as Trump's tariffs policies take hold — giving the region "a historical opportunity to foster the international role of the euro." Market watchers who spoke to CNBC were divided on the euro's potential to seize some of the dollar's share of global FX holdings. Appearing on CNBC's "Europe Early Edition" on Friday, George Buckley, chief European economist at Nomura, said he could see upside ahead for the euro, as investors looked to diversify away from the greenback. Asked whether he agreed with Lagarde's assessment of the currency's potential, Buckley responded: "Certainly to some extent." "The dollar still is the biggest reserve currency in the world … the euro is still a distant second, but it's gaining in momentum quite significantly with all the things going on in the U.S.," he said. "I think, for sure there is going to be a lot more interest." Buckley said he was seeing suggestions that, in the current environment, investors might want to allocate their funds to assets other than the dollar. "If they're thinking of switching out of the dollar, the euro is an obvious choice," he told CNBC. "It's a huge trading bloc, and clearly the euro is benefiting from this. We think that the euro could be rising to around about $1.20 by the end of the year." The euro was trading at around $1.13 on Friday morning. Since the beginning of the year, the currency has gained more than 9% against the U.S. dollar — a move to $1.20 would mark an additional jump of around 6% from current Buckley was optimistic about the outlook for the euro, Aaron Hill, chief market analyst at FP Markets, told CNBC that the dollar's dominance "remains formidable." "The euro, while backed by the European Union's substantial economic weight, faces significant hurdles," he said. "Political fragmentation across member states and reliance on U.S. security frameworks limit its global influence." Hill added that the euro's limitations were unlikely to evaporate any time soon. "While rising U.S. debt and shifting global alliances warrant scrutiny, the euro lacks the cohesion and reach to challenge the dollar's supremacy in the near term," he told CNBC. "For now, the greenback's reign endures, unshaken." On Tuesday, John Plassard, senior investment specialist at Mirabaud Group, had told CNBC's "Europe Early Edition" that, with the U.S. dollar still accounting for almost 60% of global foreign exchange reserves, there was "no competition for the U.S. dollar" right now.
Korea Herald
3 days ago
- Business
- Korea Herald
Premia launches first Saudi Arabia government Sukuk ETF in Asia for allocators looking for efficient tool to access investment grade sukuk or EM fixed income securities
HONG KONG, May 29, 2025 /PRNewswire/ -- In partnership with BOCHK Asset Management Limited (BOCHKAM), Premia Partners, the leading homegrown ETF provider from Hong Kong, announces listing of Premia BOCHK Saudi Arabia Government Sukuk ETF (the ETF) on 29 May 2025 on HKEx. As Asia's first investment grade government sukuk ETF, the physical replicated ETF is designed to provide investors with direct access to government sukuk denominated in Saudi Riyal or US Dollar issued by the Saudi Arabia government or government agencies, with total expense ratio (TER) of 0.35% p.a. only. "The launch of this ETF is a significant milestone and cumulation of a year-long preparation in our efforts to build an efficient tool for international allocators looking for diversification from investment grade emerging markets and shariah-compliant fixed income solutions," said Rebecca Chua, Managing Partner of Premia Partners. "It is a particularly timely strategy in the current market environment, as allocators increasingly look to values from more diversified allocation and uncorrelated returns.' Li Tong, Deputy Chief Executive of BOCHK and Chairman of BOCHKAM, said: "BOCHKAM is pleased to collaborate with Premia Partners to launch the Asia's first Saudi Arabic Government Sukuk ETF. This fund combines the flexibility and transparency of an ETF with the features of Islamic finance, providing investors with convenient access to Saudi Arabia's capital market. BOCHKAM will continue to foster collaboration with the Middle East and other markets by developing more globally-diversified asset allocation solutions, contributing our efforts to strengthen Hong Kong's position as a global asset management centre." Leveraging its capabilities in both Asia and Middle East, HSBC will provide a range of trustee, global custody and fund administration services for Premia BOCHK Saudi Arabia Government Sukuk ETF in both Hong Kong and Saudi Arabia. Commenting on the launch, Faris AlGhannam, Chief Executive Officer and Board member, HSBC Saudi Arabia, said: "ETFs have become a key tool for asset managers tapping into the emerging Middle East-Asia investment corridor. This landmark transaction reflects the sustained demand among foreign investors for access to Saudi Arabia's economic transformation and the Kingdom's debt capital markets. As the leading international bank with the deepest asset servicing capabilities in both Hong Kong and Saudi Arabia, we are proud to have enabled Premia to launch the Premia BOCHK Saudi Arabia Government Sukuk ETF." Mr. Mohammed Al-Rumaih, CEO of the Saudi Exchange, said: "The issuance of this ETF on HKEX marks a significant milestone in our ongoing efforts to provide global investors with access to the Saudi market and enhance portfolio diversification worldwide. This ETF, tracking the iBoxx Tadawul Government & Agencies Sukuk Index (SAR Unhedged) TRI, offers global investors a unique opportunity to access high-quality government-issued sukuk." "S&P Dow Jones Indices is delighted to license the iBoxx Tadawul Government & Agencies Sukuk Index to Premia Partners for this new ETF launch. The index provides market participants with a benchmark that focuses on shariah-compliant funding obtained by the Saudi Arabia government and its key organizations through sukuk issuances. As Saudi Arabia diversifies its economic base and fosters growth within the domestic debt market, the index is designed to encompass shariah-compliant sukuk issuances to support the kingdom's Vision 2030 initiatives," said Kangwei Yang, Director of Fixed Income Product Management at S&P Dow Jones Indices. About Premia Partners
Yahoo
3 days ago
- Business
- Yahoo
Premia launches first Saudi Arabia government Sukuk ETF in Asia for allocators looking for efficient tool to access investment grade sukuk or EM fixed income securities
HONG KONG, May 29, 2025 /PRNewswire/ -- In partnership with BOCHK Asset Management Limited (BOCHKAM), Premia Partners, the leading homegrown ETF provider from Hong Kong, announces listing of Premia BOCHK Saudi Arabia Government Sukuk ETF (the ETF) on 29 May 2025 on HKEx. As Asia's first investment grade government sukuk ETF, the physical replicated ETF is designed to provide investors with direct access to government sukuk denominated in Saudi Riyal or US Dollar issued by the Saudi Arabia government or government agencies, with total expense ratio (TER) of 0.35% p.a. only. Premia BOCHK Saudi Arabia Government Sukuk ETF (Tickers: (HKD distribution class)/ (USD distribution class)) tracks the iBoxx Tadawul Government & Agencies Sukuk Index. Covering only Sukuk instruments issued by Saudi Arabian government or its agencies, with a stable A-rated sovereign issuer rating by major international agencies, the strategy reflects the robust oil reserves, low government debt level and vibrant economic development of Saudi Arabia under the Vision 2030 Strategic Plans. The ETF offers stable income and attractive yield, as well as diversification benefits given its low correlations with other bonds and major asset classes. "The launch of this ETF is a significant milestone and cumulation of a year-long preparation in our efforts to build an efficient tool for international allocators looking for diversification from investment grade emerging markets and shariah-compliant fixed income solutions," said Rebecca Chua, Managing Partner of Premia Partners. "It is a particularly timely strategy in the current market environment, as allocators increasingly look to values from more diversified allocation and uncorrelated returns.' Li Tong, Deputy Chief Executive of BOCHK and Chairman of BOCHKAM, said: "BOCHKAM is pleased to collaborate with Premia Partners to launch the Asia's first Saudi Arabic Government Sukuk ETF. This fund combines the flexibility and transparency of an ETF with the features of Islamic finance, providing investors with convenient access to Saudi Arabia's capital market. BOCHKAM will continue to foster collaboration with the Middle East and other markets by developing more globally-diversified asset allocation solutions, contributing our efforts to strengthen Hong Kong's position as a global asset management centre." Leveraging its capabilities in both Asia and Middle East, HSBC will provide a range of trustee, global custody and fund administration services for Premia BOCHK Saudi Arabia Government Sukuk ETF in both Hong Kong and Saudi Arabia. Commenting on the launch, Faris AlGhannam, Chief Executive Officer and Board member, HSBC Saudi Arabia, said: "ETFs have become a key tool for asset managers tapping into the emerging Middle East-Asia investment corridor. This landmark transaction reflects the sustained demand among foreign investors for access to Saudi Arabia's economic transformation and the Kingdom's debt capital markets. As the leading international bank with the deepest asset servicing capabilities in both Hong Kong and Saudi Arabia, we are proud to have enabled Premia to launch the Premia BOCHK Saudi Arabia Government Sukuk ETF." Mr. Mohammed Al-Rumaih, CEO of the Saudi Exchange, said: "The issuance of this ETF on HKEX marks a significant milestone in our ongoing efforts to provide global investors with access to the Saudi market and enhance portfolio diversification worldwide. This ETF, tracking the iBoxx Tadawul Government & Agencies Sukuk Index (SAR Unhedged) TRI, offers global investors a unique opportunity to access high-quality government-issued sukuk." "S&P Dow Jones Indices is delighted to license the iBoxx Tadawul Government & Agencies Sukuk Index to Premia Partners for this new ETF launch. The index provides market participants with a benchmark that focuses on shariah-compliant funding obtained by the Saudi Arabia government and its key organizations through sukuk issuances. As Saudi Arabia diversifies its economic base and fosters growth within the domestic debt market, the index is designed to encompass shariah-compliant sukuk issuances to support the kingdom's Vision 2030 initiatives," said Kangwei Yang, Director of Fixed Income Product Management at S&P Dow Jones Indices. About Premia Partners Founded in 2016, Premia Partners is a leading ETF manager from Hong Kong, dedicated to building low-cost, efficient, best practice ETFs for Asia. As of May 29th 2025, Premia Partners manages 12 equity and fixed income ETFs designed as low-cost, efficient allocation tools for Asia. For more information on Premia or Premia ETFs covering China, Emerging ASEAN, Asia Metaverse/ Innovative Technology, Vietnam, Taiwan, China high yield bonds, China government bond, Asia USD investment grade bonds, US Treasury and Saudi Arabia Government Sukuk, please visit View original content: SOURCE Premia Partners Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hindu
16-05-2025
- The Hindu
Foreign currency worth ₹44.40 lakh seized
A woman passenger was intercepted at the Kochi airport with foreign currency worth ₹44.40 lakh. Customs officials intercepted the woman, a native of Muvattupuzha, when she went to board the flight to Dubai with 2,00,000 Saudi Riyals, based on a tip-off. During the security check, 400 notes of 500 Saudi Riyal denomination were found in her baggage. A case has been registered, and an investigation is on to trace the source of the currency. Later, the woman was released on bail.
Gulf News
02-05-2025
- Business
- Gulf News
Indian rupee firms up again - UAE, Saudi Arabia's NRIs delay money transfers
Dubai: It's proving to be a tough start to the month for Indian expats in the UAE, Saudi Arabia and other Gulf states, as they find they are getting less on their monthly fund flows home. The dirham is getting 22.82 for one dirham, which is now the lowest difference since October 10, 2024. According to currency exchange houses, there's been a clear drop in INR remittance levels from the UAE and Gulf markets in the last 48 hours as NRIs look to see whether this firming up of the rupee is just temporary. Where possible, Indian expats are holding back on their next fund transfer home. FX industry sources say that INR does look good to stay at the 23 or just under 23 to the dirham level. 'The Indian rupee has shown a clear trend to push higher early today (May 2) to 22.82 against the dirham (83.86 against dollar),' said Neelesh Gopalan, Senior Currency Analyst. 'Early to mid- next week would be a good time to get a definite trend-line on where INR is heading.' How's INR faring against Saudi Riyal? On February 10, the INR was fetching 23.41 to the Saudi Riyal, and easily the lowest point so far this year. The highest point for the INR is today's 22.36 for one SR.
