“No single currency will replace the dollar”
Published: 06 October, 2009, 20:53
Edited: 27 October, 2009, 05:39
TAGS: Currencies, G20, Economy
A switch from using the dollar as a world currency could hurt countries whose assets are mostly in dollars, says Ronald Smith, head of research at Alfa-Bank
The UK’s Independent newspaper reported Tuesday that Middle-East countries joined by Russia, Japan, China and France are holding secret meetings to end oil trading using the dollar.
“I don’t think you’ll see holders of the dollar willing to see the Euro completely substitute the dollar. I don’t think they want to put all their eggs in one basket so to speak,” Smith said.
The newspaper adds that within just nine years crude could be priced in units based on a basket of currencies including the Japanese Yen, Chinese Yuan, the Euro, Gold and possibly the Russian Ruble.
However, Smith doesn’t see this completely coming to fruition
“I don’t think oil will actually stop being priced in dollars. Everyone is so used to seeing the price of oil in dollars. Even if the transaction is in another currency it will still be indicated in dollars,” he added.
Moscow has repeatedly called for a wider use of regional currencies to cut dependency on the US dollar, saying it was a key contributing factor in causing the current global economic crisis.
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19 comments
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Why do you think every part of the world, the green bucks are being seen and exchange everywhere. Russia, Japan, France or any G7 country maybe planning to dismiss the US dollar..but..no other country has ever been more prestigious and more transparent than the US Dollar. The US economy may be hurting but the american people are more resilient. When americans stopped spending, the entire world is affected...specially the tourist industries. America is cleaning up all its junks and correcting its past mistakes..the dollar will rise again. People of the world..our currency says "in God we trust" and so must you all. Do you want a Russian money, I dont even know the nane of their currency. I can still buy a whole roasted chicken for less than $5.oo at Costco, less than a hour work at minimum wage of $7.75 in California. How much does Japan charge for the same or the american Mcdonalds in Japan...how many thousand yens?
The U. S. dollar is here to stay. There will be ups and downs but the world as it is currently organized is locked into the dollar. Any major change will upset the apple cart and cause grievous unintended consequences. Current bad economic times call for a steady hand at the federal reserves of all nations, but with transparency and fairness. Audits would go a long way in the control of money supplies and prevent possible theft of trillions of dollars by crooks. Billionaire crooks should be punished as quickly as common thieves. Also, no business or bank should be too big to fail. Let the chips fall where they may. Stop the monopolies in their tracks and give all a fair chance. Review legislation that was bought with lobby money and replace it with fair legislation. Control the treasury robbing legislation that is special interest bought. Hold legislators and the media accountable for their misdeeds. Expose crime and ethical violations of elected officials. End welfare for the rich. Control insurance schemes that are legal but unfair to the people. End unfair lending practices.
Several coutries in the world depend on america.some coutries dont like us but I think we are the most giving coutry yet.i dont hear coutries for example like Australia donating money,Africa,Asia etc.Without us several tourism will go down.We are known as the lazy people and so we like to vacation so if the dollor goes down coutries GDP goes down.