Permanent Article Link Here:
http://business.financialpost.com/2013/10/15/us-dollar-supremacy-decline/
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In today's world, the U.S. dollar currently serves as the monetary standard when it comes to international trading and business. It is the form of currency that traders and investors alike look to when they desire a secure and credible form of currency with which to use in an international market. However, due to the declining value of the dollar, the days in which this is the standard may be coming to an end. The unpredictability and insecurity of the dollar's future has traders nervous, and looking for a new means of secure currency. Currently, the dollar holds the majority of the world's exchange reserves, along with being responsible for around 80 percent of the world's exchange trading. The only major factor holding back the dethroning of the dollar as the global reserve currency is the lack of a suitable alternative that the market can agree on. Regardless, the dollar is in serious trouble in the international market, and things are getting worse as more time goes by.
The fact that the dollar is being threatened with removal as the global reserve currency and the international standard shows just how bad the current situation is. If this trend continues, it may not be long before the dollar is no longer the international standard for currency, which could plunge the United States into a very unsettling situation. Something needs to be done soon, otherwise, the future will look to be a very humbling time for the United States and the global economy.
Thursday, October 31, 2013
Dollar at Almost 2-Year Low as U.S. Confidence Sags: Peso Climbs- Bloomberg.com
Permanent Article Link Here:
http://www.bloomberg.com/news/2013-10-24/dollar-near-two-year-low-against-euro-before-confidence-data.html
Annotations:
For the last few years, the dollar has continued to decline in value, especially when compared to the euro and other international monetary units. The dollar reached a level that approached a two-year low in value during the week of October 21, while the euro, yen, and even the Mexican peso experienced small gains in value. In opposition, the euro reached its highest value in over two years, furthering the gap in value between the euro and the dollar. The dollar's 1.1 decrease in value within the previous month made it the worst- performing form of currency among the ten developed nation currencies followed by Bloomberg's currency index, and there are few signs of any significant increase in value for the dollar within the near future.
The current situation of a sagging dollar, among other issues, is one that needs to be proactively worked on. If the value of the dollar continues to slide, it is very likely that it will lose its place as the standard for trade in international markets, which would be a disaster especially for the United States economy. Although this is not an issue that can be solved overnight, the government and international traders need to take action now in efforts to change the current issue. Otherwise, it may be too late to do anything and the country could end up facing an even more dire situation.
http://www.bloomberg.com/news/2013-10-24/dollar-near-two-year-low-against-euro-before-confidence-data.html
Annotations:
For the last few years, the dollar has continued to decline in value, especially when compared to the euro and other international monetary units. The dollar reached a level that approached a two-year low in value during the week of October 21, while the euro, yen, and even the Mexican peso experienced small gains in value. In opposition, the euro reached its highest value in over two years, furthering the gap in value between the euro and the dollar. The dollar's 1.1 decrease in value within the previous month made it the worst- performing form of currency among the ten developed nation currencies followed by Bloomberg's currency index, and there are few signs of any significant increase in value for the dollar within the near future.
The current situation of a sagging dollar, among other issues, is one that needs to be proactively worked on. If the value of the dollar continues to slide, it is very likely that it will lose its place as the standard for trade in international markets, which would be a disaster especially for the United States economy. Although this is not an issue that can be solved overnight, the government and international traders need to take action now in efforts to change the current issue. Otherwise, it may be too late to do anything and the country could end up facing an even more dire situation.
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