Reports of the death of the American dollar is exaggerated, says Head of Economic Research, Stephen King, HSBC Bank. In an article for The Independent King expressed belief that the dollar is still the most liquid currency in the world, which is used primarily in international trade for the exchange, for example, the Brazilian Real in the Korean won. However, some developing countries (particularly China), taking the first steps to make do without the U.S..
For the current status of the U.S. dollar much simplifies: there is no cost for currency transfers, it is easier to contain the budget deficit, etc. At the same time, King said, for foreign creditors, and it is good and evil. On the one hand, a universal exchange unit allows it to accumulate in the national gold reserves, with another - this unit is fully under the control of Washington, and if there is a conflict of interest among American voters and foreign creditors, the losers are likely to last. For security there, billions of dollars accumulated in ZVR developing countries? - Asked King.
Before the current crisis, he said, the issue was not so. But now, to stimulate the production and support the competitiveness of American business, U.S. to produce new dollars, in other words, the lower its price relative to other currencies. Other countries accounted for only to watch as their stocks depreciate, but those who are trying to stop the devaluation of intervention, only to face domestic inflation, explains King.
Many countries, like China, have been the dollar trap-line - to begin to sell dollars means more devalue the U.S. currency and its own reserves, so the only way out is to gradually move towards achieving the status of a backup for the national currency (in this case Yuan). China, for example, in recent years has concluded with many, especially developing countries, an agreement that bilateral trade will be denominated in national currencies, ie without the U.S..
If
China through these steps to reach the goal, and will be followed by other frustrated second the status of investors as the King concludes, the U.S. eventually discover that more can not live beyond its means, through endless selling of dollars the rest of peace.
The situation on the world stock market is stabilized after a recent decline
Office properties: the cost of rent will continue to decline, the number of empty offices - to grow
In the Russian market - the second day of correction up
The Government has approved a new tariff plan for the management of the energy sector in Russia in 2010
United States: Accounts of companies and macroeconomic statistics have affected the growth indices
Europe: Commodities and the Goldman Sachs investors pleased region
Retail trade turnover of Ukraine on the basis of June fell by nearly 21%
Good morning! Information Group Finam.ru and Investment Company FINAM welcome you to their site, and wish you good day!
Analytical review of the Forex market for July 14
Stephen King wrote about the fate of the dollar
Reports of the death of the American dollar is exaggerated, says Head of Economic Research, Stephen King, HSBC Bank. In an article for The Independent King expressed belief that the dollar is still the most liquid currency in the world, which is used primarily in international trade for the exchange, for example, the Brazilian Real in the Korean won. However, some developing countries (particularly China), taking the first steps to make do without the U.S..
For the current status of the U.S. dollar much simplifies: there is no cost for currency transfers, it is easier to contain the budget deficit, etc. At the same time, King said, for foreign creditors, and it is good and evil. On the one hand, a universal exchange unit allows it to accumulate in the national gold reserves, with another - this unit is fully under the control of Washington, and if there is a conflict of interest among American voters and foreign creditors, the losers are likely to last. For security there, billions of dollars accumulated in ZVR developing countries? - Asked King.
Before the current crisis, he said, the issue was not so. But now, to stimulate the production and support the competitiveness of American business, U.S. to produce new dollars, in other words, the lower its price relative to other currencies. Other countries accounted for only to watch as their stocks depreciate, but those who are trying to stop the devaluation of intervention, only to face domestic inflation, explains King.
Many countries, like China, have been the dollar trap-line - to begin to sell dollars means more devalue the U.S. currency and its own reserves, so the only way out is to gradually move towards achieving the status of a backup for the national currency (in this case Yuan). China, for example, in recent years has concluded with many, especially developing countries, an agreement that bilateral trade will be denominated in national currencies, ie without the U.S..
If
China through these steps to reach the goal, and will be followed by other frustrated second the status of investors as the King concludes, the U.S. eventually discover that more can not live beyond its means, through endless selling of dollars the rest of peace.
The situation on the world stock market is stabilized after a recent decline
Office properties: the cost of rent will continue to decline, the number of empty offices - to grow
In the Russian market - the second day of correction up
The Government has approved a new tariff plan for the management of the energy sector in Russia in 2010
United States: Accounts of companies and macroeconomic statistics have affected the growth indices
Europe: Commodities and the Goldman Sachs investors pleased region
Retail trade turnover of Ukraine on the basis of June fell by nearly 21%
Good morning! Information Group Finam.ru and Investment Company FINAM welcome you to their site, and wish you good day!
Analytical review of the Forex market for July 14