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The reason why there are so many US dollars within foreign countries largely depends on the fact that the US Currency is being seen as a global parallel with all other currencies. It gives the world a uniform currency which it direly requires (Petersen, 2010). The people can easily compare their own currency and the other currencies of the world in the light of the US Currency which depicts its truly unique nature.
I do not anticipate a day where the US dollar would lose its status as the reserve currency of the world. This is because it is not going to happen anytime soon. Yet the risk is there because both China and Japan are strengthening their respective currencies in a swift way. However, for now the US Currency is well in tact and is easily seen as the reserve currency of the
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This dominance has been of tremendous benefit for the financial system of the U.S. and her consumers. The U.S. government has gained tremendous influence and power around the world because of use of the dollar. Today, the U.S. dollar accounts for more than 60% of foreign currency reserves in the world.
This new development of the single currency follow in five steps: (1) a stronger role for the European Council; (2) a common acceptance within the monetary Community of the goals of each national monetary policy; (3) a coordinated intervention by the European Central Banks to defend a country under pressure by speculative capital movements, either by loans or by sharing the burden of interest rates; (4) more stringent common decisions on the distribution of safety clauses for the member states; (5) a common standing by the EC in its international negotiations, particularly with the United States and Japan.
government debt (Zeng, Nielsen 2007). Less dramatic, but also worrisome, are declines against the currencies in major industrialized nations such as Australia, China, and Japan. The world currently undermines the importance of the dollar depreciation over the other currencies.
Although the term "currency" is synonymous with "money" that is a medium of economic exchange, what would be discussed in this paper is the currency market, not the money market. The reasons for this distinction will be explained below.A currency market, like any other market, is a place where currencies are bought and sold.
economy and international transactions has been impacted. Many economists and analysts are off the opinion that a depreciated dollar would make it cheaper for other countries to buy U.S. goods. Also, U.S. consumers would find it expensive to buy foreign goods, as the U.S.
ticed that the structure of the economy of America has been influenced by the economy of the natives, Indians, but also the economy of England; through the years, America developed its own financial principles and its own currency – which combined the characteristics of other
This is no longer the case in the 21st century and a country such as the United States whose liberal democratic views are very clear that church business have nothing to do with how the government runs the nation.
PRO: The countries in the GCC area are principally involved in the export of oil, and command more than half of the world’s known oil reserves. This high dependence on one industry presents a risky situation for these countries; the creation of
Among the notable economic decisions made by both domestic and international economies are dollarization and the formation of monetary unions (Douma & Schreuder, 2008). These two are uniquely different in relation to the purposes they
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