James Alexander Michie: The US dollar may not be the best option as a reserve | CBC News
Author: James Alexander Michie
A new study has emerged by the Z / Yen study group, in which it is possible to appreciate that New York is overtaking London as the best destination for international finance, since in terms of assets such as infrastructure and access to personnel. quality, the quality of London as financial capital has had a fall that has positioned it in second place while New York takes first place in that survey and for its part, the financial center of China, Hong Kong, is not far away From London.
Meanwhile, in an attempt to obtain greater monetary independence, the president of the European Commission, Jean-Claude Juncker, declares war on the dollar. Juncker also said “We must do more to allow our single currency to play a full role on the international scene” he added “It is absurd that Europe pays 80 percent of its energy import bill, worth € 300 billion per year, in US dollars when only about two percent of our energy imports come from the United States, “he also said.” It is absurd for European companies to buy European aircraft in dollars instead of euros. ”
Likewise, the president of the European Commission spoke about an event which in his opinion is completely wrong in all its senses and is that much of the essential trade of Europe is denominated in US dollars instead of the currency of the EU, the euro.
It is necessary to say that everyone, including China, uses the US dollar. To fix the prices of products marketed internationally, whether they want to admit it or not. As with bitcoins, buying something in euros or the Chinese yuan will require knowing the value of those currencies in US dollars. In addition, although the proportion of wealth and international power of the United States has weakened, the change of the US dollar would be detrimental due to its history as a reserve currency since it is not very viable and would have a huge cost.
Similarly, it must be emphasized that the fact of using the money of a single country as a reserve currency, results in the world being subject to the political whims and domestic political concerns of that country.
Take a read: https://www.cbc.ca/news/business/dollar-reserve-currency-1.4820164
Source: Don Pittis | CBC News