After the World War II US Dollar has become the most favorable trading currency. US the only nation, which allowed convertibility to its dollar during the turbulent times of World War II, faired well in establishing itself as a reserve currency replacing Pound. Total trading volumes in US dollar was more than 48% placing it far above than any other global currency.
The formation of Euro has been a historic decision in global Currency market. Euro came into existence in 1999. Since its inception in 11 countries it has been a strong contender to USD. It’s pegged currently by 10 currencies. The growth of Euro was steady and gradual. Total trading volumes in Euro rose to 34%, which is, still less to USD trading volumes globally.
With weakened dollar values triggered by credit crisis Euro has been gaining a greater confidence. Euro zone currently consists of 15 countries with many more nations in the pipeline to join. A single currency across the member countries marked by lower interest rates has been a great impetus to business here. European Central bank has become a serious force to reckon to compete with Fed. Developing nations like China and India with substantial GDP’s are willing to hedge more on Euro.
If this were not enough US dollar is falling on its own performance succumbing to overseas burdens and stress back home.Equations at Wall Street have never changed so quickly in its history. This definitely is sending wrong signals and indications for worse times ahead.
Like the Pound was replaced with Dollar. …Probably it’s now Euro to take the reigns as a reserve currency.
Euro UR Our Next Hero..
References
St.Louis Business Institute Research, White Paper
Bloomberg, Reuters – Articles
The formation of Euro has been a historic decision in global Currency market. Euro came into existence in 1999. Since its inception in 11 countries it has been a strong contender to USD. It’s pegged currently by 10 currencies. The growth of Euro was steady and gradual. Total trading volumes in Euro rose to 34%, which is, still less to USD trading volumes globally.
With weakened dollar values triggered by credit crisis Euro has been gaining a greater confidence. Euro zone currently consists of 15 countries with many more nations in the pipeline to join. A single currency across the member countries marked by lower interest rates has been a great impetus to business here. European Central bank has become a serious force to reckon to compete with Fed. Developing nations like China and India with substantial GDP’s are willing to hedge more on Euro.
If this were not enough US dollar is falling on its own performance succumbing to overseas burdens and stress back home.Equations at Wall Street have never changed so quickly in its history. This definitely is sending wrong signals and indications for worse times ahead.
Like the Pound was replaced with Dollar. …Probably it’s now Euro to take the reigns as a reserve currency.
Euro UR Our Next Hero..
References
St.Louis Business Institute Research, White Paper
Bloomberg, Reuters – Articles
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