Habiba Aziz
Contributor
https://www.ccn.com/cryptocurrency-...urrency-is-fragile-250-billion-asset-manager/
Excerpt:
The CEO of Lazard, Kenneth M. Jacobs, said that the unilateral approach of the United States towards foreign policies and trades posses a threat to the sustenance of the US dollar as the premier global reserve currency. This is a status that the greenback has upheld since overthrowing the British pounds sterling in 1945.
For the purpose of international trades and transactions, central banks across the world hold in reserve certain selection currencies. This action, in accordance to the Bretton Woods accord of 1944 permits these national banks to issue their own local currencies to their citizens in the form of IOUs and repurchase them with such reserve currencies.
Pressure on the US Dollar
In 2017, the head of FX strategy at Saxo Bank, John Hardy identified three main geopolitical issues as sources of pressure on the US dollar that may affect its status as the world’s premier reserve currency. They include:
Excerpt:
The CEO of Lazard, Kenneth M. Jacobs, said that the unilateral approach of the United States towards foreign policies and trades posses a threat to the sustenance of the US dollar as the premier global reserve currency. This is a status that the greenback has upheld since overthrowing the British pounds sterling in 1945.
For the purpose of international trades and transactions, central banks across the world hold in reserve certain selection currencies. This action, in accordance to the Bretton Woods accord of 1944 permits these national banks to issue their own local currencies to their citizens in the form of IOUs and repurchase them with such reserve currencies.
Pressure on the US Dollar
In 2017, the head of FX strategy at Saxo Bank, John Hardy identified three main geopolitical issues as sources of pressure on the US dollar that may affect its status as the world’s premier reserve currency. They include:
- The ongoing rise of China as it assumes a more prominent role in global trade and financial markets,
- The North Korean regimes striving to maintain credibility and untouchability as a nuclear power and how this impacts China-U.S. relations, but also how Japan deals with this threat in terms of domestic as well as foreign policy,
- The loosening of the U.S.-Europe transatlantic alliance and how Europe and the EU finds its feet as a more independent superpower — or not — in its own right after the German elections.
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