https://247newsbulletin.com/economy/166454.html
The article above was written in response to a senior researcher at China’s Taihe Institute, statement that “The dollar has turned into a huge black hole, which, at any time, could destroy the wealth of countries and individuals".
In the article, it is suggested that in the United States, the money supply is absorbed in international settlements and the storage of international dollar reserves. In the event that the share of these assets will be reduced, then inflation will return to the United States, thereby making the dollar even less attractive to other states.
Although demand/asset holding play pivotal roles in the overall impact of a currency worldwide, it is not the only factor. It is true that the USD has lost most of its value since it was originally put into circulation, (see https://www.visualcapitalist.com/purchasing-power-of-the-u-s-dollar-over-time/ https://www.statista.com/statistics/1032048/value-us-dollar-since-1640/ ) and that the event that precipitated an even faster downward trend was Fiat1971, however, oil trade is still very much dominated by the USD and it is still the undisputable reserve currency of the world.
It would take a string of several developments to wrestle away dollar supremacy in the world economy with the way it is currently designed to function. And while China does possess a wild card under its sleeve, it's hard to see them using it singularly especially considering the damage it would have on China's own economy.
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