Dollar's dominant role to be replaced by Euro?

Dollar's dominant role to be replaced by Euro?
Feb 13, 2008 02:11
guestmoney	Recent US dollar decline seems to suggest that it is losing its dominant role. "If US economy goes into recession, dollar will definitely lose its dominance in world economies." Some economists preidict. On contrary, Euro and RMB is appreciating very fast. The data reveals that the Euro's exchange rate against dollar was 1: 1.47 in Dec. last year. Euro has increased by 80 percent just in seven years. Many countries in the world gradually prefer to reserve Euros. It is said that Euro has already taken 25 percent in world foreign exchange reserves. By 2010, it will reach 30 percent. If this trend continues, Euro will be possible to replace dollar in the near future. On the other hand, some people predict RMB might replace dollar instead of Euro since Chinese economy is developing prosperously. Do you think it will become true? Who will replace dollar, Euro or RMB?

Feb 13, 2008 02:11

guestmoney

Recent US dollar decline seems to suggest that it is losing its dominant role. "If US economy goes into recession, dollar will definitely lose its dominance in world economies." Some economists preidict. On contrary, Euro and RMB is appreciating very fast. The data reveals that the Euro's exchange rate against dollar was 1: 1.47 in Dec. last year. Euro has increased by 80 percent just in seven years. Many countries in the world gradually prefer to reserve Euros. It is said that Euro has already taken 25 percent in world foreign exchange reserves. By 2010, it will reach 30 percent.

If this trend continues, Euro will be possible to replace dollar in the near future. On the other hand, some people predict RMB might replace dollar instead of Euro since Chinese economy is developing prosperously. Do you think it will become true? Who will replace dollar, Euro or RMB?

Feb 13, 2008 03:19	#1
CHERYL Points: Join Date: May 10, 2007 Status: Offline	I hope it is RMB.

Feb 15, 2008 03:38

KEVIN0518
Points:
Join Date: Mar 13, 2007
Status: Offline

Personally, I don't think RMB can replace dollar's dominant role. RMB's exchange rate against dollar is appreciating very fast. But the exchange rate against Euro is depreciating. Just in 2007, it depreciated about 7 percent. Euro is possible to replace dollar. As GUESTMONEY said, Euro has taken 25 percent in foreign exchange reserves. On the other hand, Euro has been circulating in EU countries for a while. However, RMB is not used as foreign exchange reserve in other countries and it just circulates in China.

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