Alan Greenspan said it is possible that the euro could replace the U.S. dollar as the reserve currency of choice. He said that the dollar is still slightly ahead in its use as a reserve currency, but added that "it doesn't have all that much of an advantage" anymore.
The euro has been soaring against the U.S. currency in recent weeks, hitting all-time high of $1.3927 last week as the dollar has fallen on turbulent market conditions stemming from the ongoing U.S. subprime crisis. The Fed meets this week and is expected to lower its benchmark interest rate from the current 5.25 percent.
Greenspan said that at the end of 2006, some 25 percent of all currency reserves held by central banks were held in euros, compared to 66 percent for the U.S. dollar.
In terms of being used as a payment for cross-border transactions, the euro is trailing the dollar only slightly with 39 percent to 43 percent.
Greenspan said the European Central Bank has become "a serious factor in the global economy."
He said the increased usage of the euro as a reserve currency has led to a lowering of interest rates in the euro zone, which has "without any doubt contributed to the current economic growth."
Euro to replace the Dollar as Reserve Currency?
#1
Posted 17 September 2007 - 09:47 AM
#2
Posted 17 September 2007 - 09:55 AM
Edited by calmcookie, 17 September 2007 - 09:55 AM.
#3
Posted 17 September 2007 - 10:01 AM
#4
Posted 17 September 2007 - 10:14 AM
#5
Posted 17 September 2007 - 10:14 AM
the regurgitations and shameful self promoting rewritings of history by this once respected and powerful man are really a shock to many of us who consider ourselves as serious observers.
i could never have imagined something so disruptive, all to make a few sheckles.
"....once respected ".............."and still powerful"
The danger here is that the price of oil might be bench marked to the Euro. This is what Saddam was going to try and do. This would send our cost of oil out the roof, but the price of gold would reach the tauted $8500 mark.
mss
Edited by mss, 17 September 2007 - 10:15 AM.
A DOG ALWAYS OFFERS UNCONDITIONAL LOVE. CATS HAVE TO THINK ABOUT IT!!
#6
Posted 17 September 2007 - 10:14 AM
SPX 850
Euro 0.85
Year 2007
SPX 1400
Euro 1.40
Who moved my cheese?
#7
Posted 17 September 2007 - 10:30 AM
johngeorge
#8
Posted 17 September 2007 - 10:46 AM
#9
Posted 17 September 2007 - 11:48 AM