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Originally posted by andy1033
How can it be the reserve currency, when its becoming so weak?
Originally posted by Divinorumus
Originally posted by andy1033
How can it be the reserve currency, when its becoming so weak?
It must become weak, in order to bring about a global reserve currency.
Originally posted by Divinorumus
Originally posted by andy1033
How can it be the reserve currency, when its becoming so weak?
It must become weak, in order to bring about a global reserve currency.
For years, OPEC members have been putting the blame on a weakening US dollar for the rise in oil prices. Some members have also been calling for changing the basis for oil pricing to the Euro, or special drawing rights (SDR) of the International Monetary Fund, or to a basket of currencies. Till now, the idea failed to acquire any traction and the dollar continued to reign supreme as the world’s reserve currency. But a recent report in the Independent noted that the “Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil”1 and move to a basket of currencies, which could include the Japanese yen, the Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Cooperation Council. If true, fructification of this move would mean the demise of the dollar actually taking place. However, the ramifications of an end to dollar-based oil trade would extend far beyond the oil market and would herald the beginning of a new international political order.