Hi peaceandlove,
It seems that the US Dollar is really losing ground. This is more obvious against softer currencies like the Brazilian Real as the fluctuation is more extense. Yesterday it was 1 US$ for 1,74BR$ which may not mean too much to some people, but only six months ago it was 1 US$ for 2,70 BR$ a drop of over 30%!
Of course we can credit a bit of this due to the fact that Brazil is exporting more oil and the influx of Dollars is mounting, however the Brazilian government is one of those which want s to deal in local currencies with Argentina, China and European countries.
The need for so many Dollars is weakening, thus the value will go down. It's great for Brazilain travellers who can still buy air tickets in US$ and can visit the US for less money than they would to visit a Brazilian resort!
I think for some emerging countries they will start to take control of the world markets and the traditionally strong countries will have to take a back seat for a while.
It's not the first time that this has happened, although it is the first time due to greed and stupidity.
Best regards,
Steve
Quote:
Originally Posted by peaceandlove
Dollar Loses Reserve Status to Yen & Euro
By PAUL THARP
Posted: 1:44 AM, October 13, 2009
Ben Bernanke's dollar crisis went into a wider mode yesterday as the greenback was shockingly upstaged by the euro and yen, both of which can lay claim to the world title as the currency favored by central banks as their reserve currency.
Over the last three months, banks put 63 percent of their new cash into euros and yen -- not the greenbacks -- a nearly complete reversal of the dollar's onetime dominance for reserves, according to Barclays Capital. The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago.
Currently, dollars account for about 62 percent of the currency reserve at central banks -- the lowest on record, said the International Monetary Fund.
Bernanke could go down in economic history as the man who killed the greenback on the operating table.
Continues: http://www.nypost.com/p/news/busines...70F8D6530791C5
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