Figaro
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- Jul 23, 2014
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The dollar shows a steady growth with regard to other until recently stable world currencies. But is the dollar that strong? After all, the U.S. has a state debt of 18 trillion dollars and can declare a technical default at any moment. Recent rise of the Swiss franc showed that the dollar is far from being a safe haven for investors.
Global capital flows are extremely unstable. Today the U.S. dollar is preferred, but it is not a vote of confidence to the American currency. It is just voting against all others, at it were.
Who will demonopolize the U.S. dollar?
A currency of some small state cannot demonopolize the dollar on the currency market, currencies of states that have a large scale foreign program are more interesting in these terms. It seems that the only thing to do is to break up the peg with the dollar, in this context the yuan is far more independent.
Global capital flows are extremely unstable. Today the U.S. dollar is preferred, but it is not a vote of confidence to the American currency. It is just voting against all others, at it were.
Who will demonopolize the U.S. dollar?
A currency of some small state cannot demonopolize the dollar on the currency market, currencies of states that have a large scale foreign program are more interesting in these terms. It seems that the only thing to do is to break up the peg with the dollar, in this context the yuan is far more independent.