Print
Email Friend
Add to Favorites
del.icio.us
Digg It!
Slashdot It!
I told you so! Now pay attention!!
Investopedia
A Forbes Digital Company
What Does Reserve Currency Mean?
A foreign currency held by central banks and other major financial institutions as a means to pay off international debt obligations, or to influence their domestic exchange rate.
Investopedia explains Reserve Currency
Currently, the U.S. dollar is the primary reserve currency used by other countries. A very large percentage of commodities such as gold and oil are usually priced in U.S dollars, causing other countries to hold this currency to pay for these goods. A large debate still continues about whether or not the U.S. dollar will stay the main reserve currency or if it will shift over to the euro.
Reference: http://www.investopedia.com/terms/r/reservecurrency.asp
The Wall Street Journal
China Takes Aim at Dollar
MARCH 24, 2009
BEIJING -- China called for the creation of a new currency to eventually replace the dollar as the world's standard, proposing a sweeping overhaul of global finance that reflects developing nations' growing unhappiness with the U.S. role in the world economy.
The unusual proposal, made by central bank governor Zhou Xiaochuan in an essay released Monday in Beijing, is part of China's increasingly assertive approach to shaping the global response to the financial crisis.
[…]
For the rest of the story see http://online.wsj.com/article/SB123780272456212885.html
This is going to leave a mark! Although the push to dethrone the Almighty Greenback is not new, this open statement by our largest international creditor, the Central Bank of the PRC, raises the stakes. Anyone that is interested in the value of the sawbuck in her/his pocket should be looking forward and trying to see how to minimize the mark this will leave on each and every Average American.
I hate to say I told you so. No - I really do, but …
Is it true that the United States is considering applying to the ECU for membership in t he EURO zone?
Report Abuse