US Treasury secretary Bessent takes his Iran dollar cutoff to the G20 in Asheville
Bessent says he will ask G20 members in Asheville to cut Iran from the dollar system. Operation Economic Outcast threatens dollar access for those who trade with Iran. Iran oil exports have dried up and inflation is above 80 per cent; China takes 90 per cent of the crude. He said he will meet Bank of Japan governor Kazuo Ueda after calling yen moves contained on Sunday, a month after Washington and Tokyo bought yen on 31 July. The yen slipped below 160 to the dollar on Friday.
Economics & Markets··Morning
The Iran dollar cutoff goes to the G20 table
US Treasury secretary Bessent says he will call on G20 members meeting in Asheville to cut Iran out of the dollar-based financial system, telling governments they must choose a side between Iran and the United States. The strategy, called Operation Economic Outcast, threatens access to the dollar for those who trade with Iran. Iran's oil exports have dried up and inflation is running above 80 per cent, while China takes about 90 per cent of its crude exports. Rachel Ziemba, founder of Ziemba Insights, said it is highly unlikely that the G20 as a group endorses the effort, citing resistance from China, India, Russia and Turkey.[1]
Yen moves look contained ahead of the Ueda meeting
The US Treasury secretary said on Sunday that recent yen moves were pretty well contained. Washington and Tokyo bought yen jointly on 31 July to counter what Bessent then called disorderly trading. The yen slipped below 160 to the dollar on Friday, the level markets watch as raising the chance of intervention. Bessent said he will meet Bank of Japan governor Kazuo Ueda on the sidelines of the G20 finance meeting that opened in Asheville on Monday. Asked whether the bank should raise rates faster, he said he would not tell it what to do but expects Ueda to do the right thing with Prime Minister Sanae Takaichi's backing. He argued Japan has left Abenomics behind and moved to what he called Takaichi-nomics.[2]
US Treasury bond buybacks rise to 4 billion dollars
Between September 9 and November 4 the US Treasury is raising its bond buyback programme from 2 billion dollars to 4 billion dollars. The 30-year US Treasury yield is at 5.27 per cent, its highest since 2007. Brent crude closed at 89.31 dollars a barrel on Friday, below a March peak of 119 dollars. G20 economic activity expanded 0.8 per cent in the first quarter of 2026. The Bank of Japan meets on 17-18 September. After Prime Minister Sanae Takaichi's spending plans, the 10-year Japanese government bond yield reached a three-decade high of 2.945 per cent earlier this month.[1], [2]
