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Strategies & Market Trends : The Art of Investing

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To: Sun Tzu who wrote (5327)	8/30/2022 2:39:08 PM
From: russet	Read Replies (1) of 10599

I would call the U.S. dollar's role in the world presently as a "global quoting currency". I think it's role as a reserve currency has been eroding (and probably now deceased) since the 1980's when we got computers that could quickly calculate exchange rates for any currencies. International businesses I am familiar have been doing transactions for materials and parts in whatever currency the seller wanted since the 1980's. When I take a trip I am usually given the option to make transactions in several different currencies, most commonly being the currency of the country I am in, or the US dollar, or the Euro, and many countries accept whatever you want to use as a currency. Even nationalized businesses and governments will deal in multiple currencies, for not just buying things from other countries, but to supply things as well. Currency conversions can be done in milliseconds. Many commodities and products are quoted in US dollars as a starting point in negotiations, but the transactions are usually done in a different currency or a combination of other currencies and other things. This includes goods, services and even financial transactions. Computers, less restrictive global trade and multiple trading partners wiped out the need for a global reserve currency a long time ago. I think the concept of a global reserve currency is dead, except in the minds of political luddites that want to believe they have power over other people by insisting they possess a fantasy reserve currency. This last year has proven that Russia can transact anything they want in any currency they want.

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