US Dollar Dived
The confidence on the US Dollar, the US Banking System and its Monetary Policy is eroding. This was earlier expressed in Low Confidence in the US Dollar and Brazil and China not using the US Dollar . Now, another member of the Group of 20, Russia is shouting about a new global currency to replace the US Dollar.
In the Forex Market, the US Dollar continued its dive against most majors. It took a dive against the Pound. Against the Euro, the US Dollar dropped to its lowest level for this year.
No Confidence in the US Dollar
The lack of confidence in the US Dollar has prompted other nations to consider alternatives to the use of the US Dollar as the world’s main reserve currency.
It was China and Brazil that started the spark on replacing the US Dollar in international trade. The two countries started their negotiation on the use of their own currencies for their trading activities.
Now, Russia is proposing a new supranational currency to replace the US Dollar.
It was reported that Russian President Medvedev has again reiterated his proposal for a new global currency and even suggested the use of the ruble a regional reserve currency. Russia’s submissions to the Group of 20 meeting in London in April included studying the establishment of a supranational currency.
We need some kind of universal means of payment, which could create the basis of a future international financial system
Russian President Dmitry Medvedev said to CNBC on the 1st. June.
It was also reported that the Russian President may discuss his proposal to create a new world supranational currency when he meets his counterparts from Brazil, India and China later this month.
Displacement of the US Dollar
The idea of replacing the US Dollar in international trade is nothing new. The European Nations are now using the Euro. However, the Global Financial Crisis and the current economic recession may accelerate the displacement.
Tun Dr Mahathir Mohamad noted the weaknesses in the US Dollar have been advocating this idea long ago to the Middle East countries.
He repeated his advice in his speech at Institute For Policy And International Studies, Tehran, Iran, on 30 November 2008.
Another solution could be the use of the gold dinar purely for trade payments. In any case the Islamic ummah can reduce the attacks against them by not using the American Dollars for trade payments, especially for oil.
To save our currency and economy from being affected by western banking practices and the U.S. Dollar, a new trading currency should be proposed to replace the U.S. Dollar. Such a trading currency should be tied to gold and used only in international trade.
Truly the Muslim ummah are in the best position to initiate and sustain the monetary and financial systems of the world. This is because they are in possession of more money than they can find use for. They are even in a position to insist that their oil be paid in the local currency or in any currency designated by them. Whatever currency they choose will become strong simply because there will be a demand for it just as today the U.S. Dollar has a value because there is a demand for it in the settlement of trade.
However, it is unlikely the oil producing countries in the Middle East will follow suit the actions of the other counties in replacing the US Dollar for their oil trade. This is because the US could easily persuade them to stick to the US Dollar because most if not all of them have huge investments in the US. They are also highly dependent on the US military equipments.
Hi!
Thank you for the post, interesting to note that Russia is taking a similar stand as China. Meanwhile, believe that US will try their very best to regain confidence for the dollar from emerging growth countries, especially China, Russia and India.
Cheers.
Zeus’s last blog post..Renting Out Your Room – Beware!
The United States is having its recession nowadays, but I do believe that a strong country like it can still stand against this crisis. US is a very strong country, sooner or later, it will recover and rise up again.
Everything dynamic and very positively!
The fear of recesion is almost over now… where the dollar will move now???Nice post..thanks.
Yes, most of country who used $ now always get the effect from $ fluctuation. I agree to start to replaced $ with other currency that more stable
Indeed dollar is going down and for many people that is real bad.
US dollar is going down, euro is growing up, that is horrible.
Indeed US dollar is going down, euro is getting stronger.
Free emo Layouts’s last blog post..Abstract Myspace Layouts
No translation. Please add translation.
Hello,
? liked your blog.I also use this wordpress theme like youbut I have some problems.Could you please help me to solve them.I did not see your mail adress so that I typed my requests as a comment..
1- How can I increase post numbers on main page?
2-And website adress links do not work on main page but if you read a post single you can clik it.Do you know how can we solve this?
my web page : htt://www.zahek.com
thanks.
zahek
The US Dollar collapsed. It will make a turnaround soon. The collapse is tactical.
Zalek, It’s too crumble some to reply to your questions here. I have replied it by email.
US dollar is going down, euro is growing up, that’s part of the game.
The Dollar is expected to turnaround “soon”.
Many Countries are thinking of the uncertainties of the US Dollar but dare not make the move to replace it.
The recession is not really over yet. It is expected to be over by the end of this year. There will be a turnaround. Look out for my next post on the US Dollar.
There is no doubt that the US will recover from the recession sooner or later. But the damage it created it terrible.
I agree. The US will do everything within their power to regain the confidence of Russia, India and China.
I’m sure, the strong country like America will rise very soon, maybe there still somthing to fix.
Best Tourist Destinations’s last blog post..National Air and Space Museum of Washington DC
There’s a lot more things to be rectified. Otherwise, there will be another economic crisis.
[...] action to the Kremlin Report on the Bilderberg Meeting, Russian President Dimitri Medvedev joined calls by China, Brazil, and other nations, to prepare for the collapse of the US Dollar and [...]
Hi, i must say fantastic website you have, i stumbled across it in AOL. Does you get much traffic?
Reasonable traffic.