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Discussion: Reserve Currency

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Question: The US dollar is the world's reserve currency. China, Russia, and other smaller countries are increasingly voicing a desire for a new currency to replace the US dollar as the world reserve. Why? How would a change in reserve currency impact foreign countries and impact the US?

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Solution Summary

Reserve currency is examined. How would a change in reserve currency impact foreign countries and impact the US is determined.

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For more than 50 years, the US dollar has been the world's reserve currency, being used by many countries in the world to assist in trade involving commodities such as petroleum, gold and manufactured products. Things have been changing in recent years and many of these same countries, including China, Russia, India and Japan, are developing trade agreements that will include only their own currencies. China is believed to be the leading economic power of the future and is the main influence on other countries to change the way world commerce is conducted and money is exchanged. Many of ...

Solution provided by:
Rachel Kozicki, PhD (IP)
Education
  • BA, Ashford University
  • MBA, Ashford University
  • Post-Master's Certificate, Northcentral University
  • PhD (IP), Northcentral University
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