Europe & China Join The War
Global currency war starts and the stakes are the highest they’ve ever been.
London | Brisbane. 10 August 2026. For immediate release.
Following the US Treasury’s selling EUR for YEN to assist the Bank of Japan’s USD/YEN sales it seems that the other two economic giants had been preparing for this treachery.
On 24 July 2026 the ECB confirmed that the Eurosystem had started the onboarding process for EUREP, a standing liquidity backstop run by the ECB for non-euro area central banks and monetary authorities. Effective in Q4 2026, onboarding has already begun.
Eligible central banks borrow euros temporarily from five Eurosystem national central banks against high-quality euro-denominated collateral up to €50 billion per central bank with no restrictions on how the borrowed euros may be used.
This facility was created for EU central banks during COVID and its expansion is a clear sign that the EU views the USD’s role as global reserve is coming to an end.
China seems to have seen this coming too but has a different approach. The People’s Bank of China has been buying Gold continually but the announcement on 7 August 2026, blew everyone’s minds.
In July 2026 the PBoC bought: 640,000 fine troy ounces (nearly 20 metric tons). This was the largest monthly addition since October 2023 (when the PBOC added 740,000 ounces). It extended China’s consecutive monthly gold-buying streak to 21 months. The pace has accelerated steadily. The buying continued amid broader central-bank demand for gold as a strategic reserve asset.
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Ian Reynolds: Trader & Investor | Former Bank Foreign Exchange Market Maker | Early investor in Bitcoin & Tech Founder. Helping investors understand the radical changes coming in macroeconomics and geopolitics.
Suberia Capital: Special situations investing for high net worth individuals.
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