Although many funerals have been held for the US dollar, still it lives on. On the eve of the collapse of the Bretton Woods currency system, the dollar made up almost 80% of global foreign-exchange reserves (in 1970 it totaled 77.2%, and in 1972 – 78.6%).
Then, after the transition to the system negotiated at the 1976 Jamaica Conference, that percentage gradually declined, reaching its lowest level – 59.0% – in 1995.
In the wake of financial globalization, the dollar’s positions strengthened again (reaching 70-71% between 1999 and 2001), but then a new decline was seen in the dollar component of global foreign-exchange reserves – dropping below 61% in 2014. Nevertheless, it is still higher than in 1995.
According to the Bank for International Settlements, in April 2010, 84.9% of global foreign-exchange market transactions were carried out in dollars, a figure that had increased to 87% by April 2013.
For comparison, the percentage of those transactions conducted in euros during that same period fell from 39.1 to 33.4%. The discrepancy between the positions of the dollar in world finance vs. the US positions in the global economy cannot be overlooked.
The US share of world GDP is currently about 20%. China has already surpassed America in terms of GDP (based on the purchasing power parity of the currency), but in the global currency market, only 2.2% of transactions were carried out in yuan in April 2013.
There is no accurate data regarding how much of the world’s foreign-exchange reserves are held in yuan, but experts estimate that it is not much higher than 1%.
These disparities are quite reminiscent of the global economic panorama of the late nineteenth and early twentieth centuries. In those days the world’s economic leaders were being reshuffled.
The United States was in first place due to the volume of its industrial and agricultural output. Germany was moving into second place in some categories. And Great Britain, which for most of the nineteenth century had been considered «the world’s factory», had begun to slide into third place.
Complete story at - The 4th Media » War and Dollar: To Protect US Dollar, The FRB, US Bankers Prepare for a Major War
Then, after the transition to the system negotiated at the 1976 Jamaica Conference, that percentage gradually declined, reaching its lowest level – 59.0% – in 1995.
In the wake of financial globalization, the dollar’s positions strengthened again (reaching 70-71% between 1999 and 2001), but then a new decline was seen in the dollar component of global foreign-exchange reserves – dropping below 61% in 2014. Nevertheless, it is still higher than in 1995.
According to the Bank for International Settlements, in April 2010, 84.9% of global foreign-exchange market transactions were carried out in dollars, a figure that had increased to 87% by April 2013.
For comparison, the percentage of those transactions conducted in euros during that same period fell from 39.1 to 33.4%. The discrepancy between the positions of the dollar in world finance vs. the US positions in the global economy cannot be overlooked.
The US share of world GDP is currently about 20%. China has already surpassed America in terms of GDP (based on the purchasing power parity of the currency), but in the global currency market, only 2.2% of transactions were carried out in yuan in April 2013.
There is no accurate data regarding how much of the world’s foreign-exchange reserves are held in yuan, but experts estimate that it is not much higher than 1%.
These disparities are quite reminiscent of the global economic panorama of the late nineteenth and early twentieth centuries. In those days the world’s economic leaders were being reshuffled.
The United States was in first place due to the volume of its industrial and agricultural output. Germany was moving into second place in some categories. And Great Britain, which for most of the nineteenth century had been considered «the world’s factory», had begun to slide into third place.
Complete story at - The 4th Media » War and Dollar: To Protect US Dollar, The FRB, US Bankers Prepare for a Major War
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