Key Takeaways
- Russia launched a "massive" missile and drone strike on Kyiv, killing at least 13 people and injuring over 80, in what officials describe as one of the largest aerial assaults of the conflict.
- The US dollar's share of global foreign exchange reserves has fallen to 56.3%, the lowest level this century, as central banks diversify into gold and non-traditional currencies.
- The European Union announced a major trade liberalization package for Armenia, removing tariffs on approximately 80% of Armenian exports to reduce its economic dependence on Russia.
- Pakistan's Prime Minister Shehbaz Sharif is traveling to Tehran to attend the state funeral of Iran’s former Supreme Leader Ayatollah Ali Khamenei, amid heightened regional security.
Kremlin Escalates Rhetoric Following "Massive" Strike on Kyiv
The Kremlin has warned that Europe is "escalating tensions" and stated that Russia cannot "turn a blind eye" to perceived security threats. This rhetoric follows a devastating overnight bombardment of the Ukrainian capital. Russian military chiefs briefed President Vladimir Putin on a "massive" strike involving over 60 missiles and 100 jet drones targeting what Moscow termed "military or quasi-military facilities."
Ukrainian officials reported that the strikes hit residential buildings, a hotel, and energy infrastructure across all 10 districts of Kyiv. At least 13 people were killed and dozens more hospitalised. In response to the escalation, neighboring Poland, a NATO member, briefly scrambled fighter jets to secure its airspace. The Kremlin signaled it would continue to "increase pressure" on the "Kyiv regime" to achieve its strategic goals, despite some internal debate between proponents of "decisive measures" and "restraint."
US Dollar Dominance Wanes in Global Reserves
New data from the International Monetary Fund (IMF) reveals that the US dollar’s share of global foreign exchange (FX) reserves has hit its lowest point since the late 1990s. The greenback now accounts for roughly 56.3% of the $12 trillion in global reserves, down from over 72% in 2001. This shift reflects a long-term trend of de-dollarization as central banks increasingly turn to gold and "nontraditional" currencies like the Australian dollar and Swiss franc.
While the dollar remains the world's primary reserve currency, its grip is loosening as BRICS nations and other emerging economies seek to settle trade in local currencies. Analysts note that while the dollar's stock remains steady at approximately $6.77 trillion, its relative share is being eroded by valuation effects and a strategic move by reserve managers to reduce exposure to US asset "policy shocks."
EU Moves to Pivot Armenia Away from Russian Influence
In a significant geopolitical shift in the South Caucasus, European Commission President Ursula von der Leyen announced measures to liberalize trade with Armenia. The proposal would make nearly 80% of Armenian exports to the EU tariff-free, specifically targeting sectors like fresh produce and beverages that have historically relied on the Russian market.
The EU is also providing an additional €18 million in aid, completing a €52 million support package designed to bolster Armenia's economic resilience. Von der Leyen characterized the move as a response to "economic coercion" from Russia, stating that the EU "steps up" when its partners face pressure. This trade pivot follows Armenia's recent efforts to diversify its security and economic partnerships beyond its traditional alliance with Moscow.
Global Leaders Gather for Khamenei Funeral Amid Regional Volatility
Pakistan’s Prime Minister Shehbaz Sharif is among several world leaders arriving in Tehran for the state funeral of Ayatollah Ali Khamenei. The former Supreme Leader, who led Iran for 36 years, was reportedly killed in a joint US-Israeli strike in late February. The six-day mourning period is expected to draw between 15 and 20 million mourners, prompting Iranian authorities to place the military on high alert.
The funeral comes at a critical juncture for Middle Eastern diplomacy. While regional tensions remain high, mediators from Qatar and Pakistan have indicated that a deal to end the broader conflict may be close. The presence of high-level delegations from Russia, China, and India underscores the significant geopolitical weight of the transition in Iranian leadership.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.