Dirhams & Dollars

With Eid Al Adha dominating the minds of most Middle East residents this week, the next five days will be quieter than usual in the UAE. That being said, it won’t stop the relentless churn of news from around the world, as US sanctions on both China and Russia finally snap in to place at the end of this week. The value of tariffs on Chinese imports in to the US will rise to $50 billion on August 23, while trade sanctions on Russia are being dubbed as the “bill from hell.” These include potential curbs on the operations of state-owned Russian banks, restrictions on holding Russian sovereign debt as well as measures against Western involvement in Russian oil and gas projects, according to news agency Reuters. We discuss the blow-back from these sanctions, and what they mean for global trade. We also discuss currency fluctuations, and where the bombing Turkish lira now stands.