Foreign exchange – cryptocurrencies under pressure – economy

Increased regulatory pressure in China sent cryptocurrency prices down on Friday. The two most important, Bitcoin and Ethereum, fell 5.8 percent to $ 42,281 and 8.1 percent to $ 2,887, respectively. China declares all cyber foreign exchange activities illegal and prohibited foreign crypto exchanges from providing any services to customers in China. Offenses would be punished severely. The government will resolutely take action against speculation with cryptocurrencies in order to protect citizens’ assets and the economic, financial and social order, the central bank said. China is working on a digital version of its currency, the yuan.

The day after the Turkish central bank’s surprise interest rate cut, more investors withdrew from the country’s currency. In return, the dollar rose by 1.3 percent and hit a record high of 8.89 lira. The euro gained 1.1 percent to 10.41 lira and narrowly missed its record high. Commerzbank analyst Tatha Ghose warns that since the central bank also cashed in on its promise to keep the key interest rate above inflation, it undermines its credibility. After the publication of the Ifo business climate index, investors parted ways with the euro. The European common currency fell by 0.2 percent to 1.1715 dollars. Germany’s most important economic barometer fell compared to the previous month by 0.8 points to 98.8 points. It is the third decline in a row, which experts usually interpret as an economic turning point. The problems in the procurement of raw materials and intermediate products slowed the German economy, said Clemens Fuest, President of the Ifo Institute. The domestic rates are on page 34 today.

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