Currency Trading Stories
What consequences will China and Russia dropping the dollar will have in the US?
St. Petersburg, Russia – China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.
http://business.asiaone.com/Business/News/Story/A1Story20101124-248833.html
The US dollar will slowly be losing reserve currency status. More countries will follow Russia’s, Brazil’s and China’s example. When more countries stop accepting dollars, US wont be able to buy products around the world with printed dollars. This means more expensive imports, and since the US imports most of the stuff it consumes, most things will become more expensive. Inflation, in other words.
Currency Trading With The Strength Meter June 10, 2008
