New Challenge for US Monetary Domination
For many years, US Dollar dominated world financial industry. It is commonly accepted that US Dollars is the world reserve currency and become standard in global trading. No wonder since America’s monetary dominates the world.
However, last financial crisis is like a waking alarm that US Dollar is also vulnerable. US Dollar exchange fall in to the lowest position since decades ago. This fact becomes a challenge for US monetary domination. With the high inflation rate, the US Dollar will tend to fall again and it worries countries that save their reserves in US Dollar. Many countries, including Russia and China, are calling for a new world standard for world reverse. They believe that the world needs new synthetic reverse currency to replace US Dollar.
Until these days, US Dollar still accounts up to 64% of world foreign reserves. But the rise of Euro could be a serious contender for the domination. The most important factor to keep the domination is the US economic it selves. If US economic could free from the crisis and inflation rate could be minimize, the US Dollar exchange will be strengthen and stable. With stronger buying power, and the fact that there isn’t any perfect alternative for US Dollar, it will rise again.