Falling Of Us Dollars
...held currency in the world. The US currency was effectively the world currency, the standard to which every other currency was pegged. As the world's key currency, most international transactions were denominated in dollars.
After World War II, all European nations that had been involved were heavily in debt and transferred huge amounts of gold into the United States, which contributed to the power of the United States. Because of that, the US dollar was strongly appreciated. After that, Bretton Woods system established a system of payments based on the dollar, and all currencies were defined in relation to the dollar. So the US dollar became the main "Reserve currency" and other countries would peg their currencies to the US dollar through buying and selling US dollars (Hill 2007). In doing so, the US dollar took over the role that gold had played under the gold standard in the international financial system and was the only currency that was backed by gold. But recent years, the depreciation of the American dollar against many foreign currencies has drawn a lot of attention around the world.
The article starts giving the picture that the US dollar experienced depreciation after it became the dominant currency in the world followed with the reasons behind the sharp decline of the US dollar as well as the investigation of whether the dollar is close to the end and will Euro replace it. Then the paper briefly explains how a country’s currency reflects the country’s global competitiveness and gives the opinion whether dollar can retain its reserve currency status. Furthermore, the paper investigates how monetary policies in the emerging Asian countries affect the value of dollar.
The conclusion highlights the main key findings. Then the paper gives some recommendations in saving the falling US dollar from the awkward.
1. What has occurred to the value...
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