Why do we compare our country’s currency to that of US’s and determine our currency’s value?
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Victory in WW2. Active discouragement of the previous standard: pound sterling. Most other countries were in ruins.
Being a reserve currency is a blessing and a curse. A blessing when other countries were still in ruins and light years to catching up technologically. A curse now when US trade surpluses are no longer in the positive; it’s now imperative for US to maintain the status. The biggest threat is China – something all the highly paid analysts haven’t been able to raise to the politicians awareness till recently. The digital yuan and China’s edging for the Yuan to be used as a currency for trading petroleum, banking will reduce the US global strength. I think there are people in power who understand it, pivoting isn’t the easiest with the political discourse in current state.
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