Topic: Fiat currencies - page 3. (Read 1726 times)

I don't know if this true too, but it is circulating over the internet stating the USA is getting poor and that they don't have gold reserves, all is gone so maybe that's one of the reason that Trump will get impeach, I am not sure but there's a lot of videos. They even mentioned that America is just preparing for war so they can have money again if they win against war.

Can't disagree with that, mate.
But there were defaults and economical crisis on USD's way.
And there is a chance for it to happen again, because bubble is slowly growing now.
Unfortunately for USD at this time there are a lot of competitors who wants to take over US economy like BTC or other cryptocurrencies.
So there is a point of talking about long-term USD weakening even if its seems like there is nothing to worry about

Indeed a lot of news or articles that mention the US Dollar is getting weaker, in my opinion it's a lie news. Because it's the reality
very different. The evidence is that until now the US Dollar is still the strongest and most widely used currency for payment transactions.
Maybe because America has long controlled the world economy. It's no wonder it's so difficult for other currencies to beat the US Dollar.
Although the euro is more expensive than the US Dollar, but until now the euro has not been able to beat the US Dollar. This is strong
evidence that US Dollar is not weakening.

Even though the euro's value is higher, in terms of dominance it can not beat the dollar. After the Second World War, the United States is a nation with almost three-quarters of the world's gold reserves. No other nation will compete with the gold reserves of America. That's why the dollar became the dominant currency and the world's exchange rate benchmark. The dollar will remain the dominant currency as long as the American state remains strong in politics and economy.

Yeah! I have been hearing the whole ‘Dollar is getting weaker’ thing lately. But Dollar still remains the strongest. Even after the whole US-Iran situation. It is stronger than other Fiats because it is what is more used in international trades and financial transactions. Its strength comes from its users worldwide and not its price.  They have lots of markets spread around the world. They are arguably the heavyweight in Politics and Economy. All these reflect in the strength of their currency.
Will Euro take over? I can't say. Whatever Fiat it is that will take over, it certainly won't be anytime soon.

What claims the weakening of the dollar at the moment huh. Strong leadership trumps and regulations that are greedy and strict, let alone the economic strength of the country. What I see is a dollar that doesn't collapse, although the two countries that wage an economic war that crash in another country's local currency's value. When you foresee a poor dollar, this is a warning of the deterioration of the global economy. Evidence of why the USD has become the currency exchange rate pioneer, as the US has always had the world's largest gold reserves. When you look at the market at the moment, the euro will prevail, so that the value of the dollar remains the exchange rate and the global currency.

The dollar has been depreciating for years. I think if a new order is to be built, it should be done with a more limited currency. Production must continue to prevent inflation. In today's economies, inflation has a barrier to investments. Bitcoin can overcome this by having a limited number. I'm not saying it will surpass it. Just a shot.

Correct, Americas domination was been achieved after the WW2 and since then dollar become the dominant as long as they remained strong
it won't be change, they will keep this distance from other fiat currencies.
The reserves speak for itself why it was holding the privileged of topping above other currencies in the world.

Even though the euro's value is higher, in terms of dominance it can not beat the dollar. After the Second World War, the United States is a nation with almost three-quarters of the world's gold reserves. No other nation will compete with the gold reserves of America. That's why the dollar became the dominant currency and the world's exchange rate benchmark. The dollar will remain the dominant currency as long as the American state remains strong in politics and economy.

I would assume your 'strong' means dominance.
The US Dollar is one of the strongest Fiat that I know. Probably the strongest.
The USD is of very strong because it has the majority of usage with most countries; Trades and Stock exchange. Much more than Euros.
And to top that, the US economy has been booming.
I think the reason for its recent dwindling is the reduced relation with the international community.
But, a time will come when a stronger currency will surface.
Will it be Euros? I don't know. Time will tell.

How cruel seeing america in fight with China. The effect of the ongoing trade war has seen some negative effects on america on which the power of USD has been lessen, businesses from america whose goods and products are mainly coming from China is in trouble also. China estate is not the same as it is on early 2000s and America's president, Trump, should know that.

Have you ever heard the term seizing is easier than maintaining?
China as an expert in duplication and modification is now challenging America and trying to change the center of gravity of the world from America to China. Learning from the American strategy, China made a long-term program OBOR (One Belt One Road) as well as aggressively reducing the USD in its foreign exchange reserves and replaced with gold with the aim of reducing dependence on the US dollar.

But I think it is still difficult and even impossible for Yuan to shift the dollar considering that the portion of the Yuan Currency in Global Foreign Exchange Reserves is still very small.

http://data.imf.org/?sk=E6A5F467-C14B-4AA8-9F6D-5A09EC4E62A4

Besides that, one of the reasons why Yuan is less popular as a medium of exchange in international trade is because the value of the Yuan is pegged by PBoC (Bank of China). PBoC control over the exchange rate becomes less favored in trade transactions. PBoC can at any time weaken or strengthen currency exchange rates. Of course, it would be less profitable to hold the yuan, then the PBoC would significantly depreciate the exchange rate.

The final reason in international trade is that there are no eternal friends and opponents, only eternal interests. So to replace the dollar, the Yuan must be supported by many countries in the world, but with all the current geopolitical turmoil and international geostrategy, it will be very difficult to shift the dominance of the dollar with the Yuan.

The growth rate of China in comparison to America is very big. Already more and more investments were getting moved towards China from America. Weakening of USA is based on the economic policies that were framed by the present ruling government. Maybe when the change takes place with the government once again USD might gain more strength for a bigger push to lead the market.

Dollar is eventually gonna be replaced by Yuan (chinese currency).

Right now the better yielding fiat currency then Euro, Yen and others is Dollar. It's because of interest rates, which are currently at 1.5% - 1.75%. If you compare for example with Europe, they have negative interest rates. That means that you are punished for storing money in your bank account.

So the capital now flows into USA. That means Dow Jones will keep hitting record highs.

However the shift will come and capital will be redirected to China which will become economical powerhouse of the world. It should happen in 10, maybe 15 years, no one knows the exact date of course. But it will happen 

I don't know what makes you think that the Japanese Yen is a real competitor to the American dollar

Maybe, it's because the USD/JPY chart is sort of inverted with respect to the USD/EUR chart, and when you see it going up you think that it is the Yen rising? In fact, it's quite the contrary. Further, you can't actually compare the economy of the European Union with over 500 million people with Japan (140 million people or so)

Europe has a way stronger and diversified economy than Japan, and that's what ultimately counts. Japan, on the other hand, heavily depends on the US, and its currency can't be any stronger than the currency of the country it depends on (even though it might sometimes look otherwise)

It will not be able to do so. The euro is considered a common currency in Europe and they can use it to exchange money anywhere in Europe, especially countries in the European Union. USD is the fiat currency of the United States and it is very valuable, because it is one of the richest countries in the world and has many trillion dollar technologies and companies, besides its currency is paired with many countries in the world and it became very important because the dollar is still very valuable now. That is why it is widely used in many countries.

It is basing what people prefer to use that's why usd is still dominant and not easy to replace even it is not own a highest value. a lot of transactional way in all country that uses is using usd as first option if you have it, anywhere we go even you purchase in internet they still prefer usd first. and in additional, a lot of higher business man and company use usd so there is no doubt that usd didn't loss its dominant.

at this time many are starting to oppose the dollar as a currency reference, many are proposing gold as a replacement because it is more stable than the dollar, and some others choose crypto as a substitute for the dollar. indeed if we look at the fluctuation of the dollar index last year is quite large

Having a higher value doesn’t mean that a currency is dominant, as far as I know, Euro is not the only currency that has value more than the US dollar, there are lots of currencies that has more value than the USD and the first on the list is the Kuwait Dinar. The Kuwait Dinar (KWD)is the highest currency and they have one of the highest oil exports.

1 KWD to USD as of writing this is $3.30. The next currency is the Bahrain Dinar at $2.65. Others that follows the list are Oman Rial, Jordan Dinar, British Pound Sterling, Cyman Island Dollar, and a lot of them. But despite that, the US dollar is regarded as the most powerful currency in the world.

Who knows. Some catalyst might just come in our lifetimes that would start the dollar's fall. It might be bitcoin, or some other crypto, or Gold or other physical asset. One thing's for sure, the governments and institutions that are backing up dollar and fiat in general, won't let that happen anytime soon. So that catalyst would have to be pretty grave and drastic for us to see it in our lifetime.