Posts Tagged ‘Reserve currency’

Some nervous manipulation of the status of the dollar as a reserve currency because of the economic decisions of Congress and the political.

BAGHDAD / Obelisk: A report published by the newspaper “New York Times”, the U.S. holding period of time until the year 2012, saw the value of the U.S. currency fell in the world’s reserves of 70.5 per cent to 63.1 per cent.

The report said that “U.S. policy is now in worse shape than it was in the period prior to the debt ceiling crisis in 2011, as the bond markets are looking forward to the possibility of rising national debt, above the ceiling set by Congress.” (more…)

Advertisements

On: Saturday 03/09/2011 12:38

Baghdad (news) .. the committee said that Iraq’s parliamentary Ghaderaly improve the status of the dinar and adopt it as part of international reserves, noting that Iraq had more than (80 to 90) billion in reserves at the central bank and this is positive for the benefit of the Iraqi dinar.

A member of the Committee of Economy and Investment and parliamentary deputy / National Alliance / Abdul Hussain Abtan told the reporter Agency (news) on Saturday: “It is certain that Iraq is able to adopt the dinar as part of the reserves of international and especially that he has a big supplier in the field of oil and more than (80 to $ 90 billion) Central Bank reserves and the positive impact on the Iraqi currency against the dollar and make the dinar as its currency position as was formerly the world’s currencies. ”

(more…)

Today, Monday, August 15, 2011, marks the 40th anniversary of the US default on the dollar’s convertibility into gold. It was the world’s de facto reserve currency and thus began an experiment with a reserve fiat currency that was doomed to failure before it began, because there has never been a successful fiat currency in all of history.

August 15, 1971 was just like any other day for most people, and President Nixon’s unprecedented decision to cut the US dollar’s gold international convertibility was largely ignored by the public. The majority of citizens didn’t understand the implications for their financial future. Contrast that to today, where a historic downgrade of US debt and a very public $2-trillion increase of the debt ceiling dominated headlines and the television news.

(more…)

BEIJING, Aug 3 (Reuters) – The yuan may only account for 3 to 5 percent of global reserve currencies a decade from now, an advisor to China’s central bank said on Wednesday, in remarks that underscored the global importance of the dollar as an investment.

Writing at a time of global concerns over U.S. economic health, Xia Bin, an academic member on the monetary policy committee of the People’s Bank of China, said the dollar would remain an important reserve currency for a long time yet.

“The dollar will serve as the most important world reserve currency for a quite long time in the future,” Xia said in an article published in the China Finance magazine.

Confidence in the dollar and the U.S. economy has taken a beating after the United States narrowly escaped a disastrous debt default this week, running the risk of losing its gold-plated credit rating.

Read More:  http://mobile.reuters.com/article/idUSL3E7J327H20110803?irpc=932

The practice of using the U.S. dollar as the world’s reserve currency has become well entrenched in the minds of global investors. In fact, the system has become so habitual that many now believe there is no alternative to owning U.S. debt and dollars, simply because they are about as common as dirt.

The reasoning for this is since the market for Treasuries and greenbacks is so large; there is no other parking place for that money, which makes a mass exodus from U.S. debt holdings virtually impossible. Therefore, investors can’t sell and values can never go down in a significant manner. Such sophomoric reasoning is akin to saying IBM stock can never fall precipitously unless most owners decided to sell their shares.

(more…)

Washington may have averted a debt default by compromising on how to cut the US budget deficit, but underlying problems remain and those economic woes are driving a global search for an alternative reserve currency.

Officials, from the head of the International Monetary Fund (IMF) to the Philippines finance minister, have warned that the US dollar may lose its reserve status.

For China, the largest lender to the US and the world’s second biggest economy, the answer is close to home.

Read More: http://www.bbc.co.uk/news/business-14370788

By Garth Theunissen and Allison Bennett – Jul 11, 2011

The best currency forecasters say the dollar’s 13 percent slide over the past year is coming to an end as Europe’s deepening debt crisis discourages bets against the world’s reserve currency.

Led by Schneider Foreign Exchange Ltd., the five most- accurate firms during the six quarters through June 30 as measured by Bloomberg see the dollar trading at $1.42 per euro on average by year-end, compared with $1.43 on July 8. Against the yen, they predict the greenback will rise to 83 from 80.64.

Read More: http://www.bloomberg.com/news/2011-07-11/best-currency-forecasters-say-worst-is-over-for-dollar-after-index-tumbles.html

A strengthened International Monetary System (IMS) – one that is resilient to future turmoil – is a key goal of the world community as it recovers from the global economic crisis.

Follow the efforts of policymakers, academics, and other experts here, at www.imsreform.org, as they debate and discuss reform proposals and work to build a more stable international monetary system.

(more…)

February 10, 2011

By Dominique Strauss-Kahn

The international monetary system (IMS) is a topic that encompasses a wide range of issues—reserve currencies, exchange rates, capital flows, and the global financial safety net, to name a few. It is one of the key issues on the G-20’s work agenda for 2011, and a topic that is eliciting lively discussion—for instance the recent, insightful report of the group chaired by Michel Camdessus, called the “Palais-Royal Initiative”.

(more…)