
	Where results make sense

Topic: Reserve currency

Related Topics

Foreign exchange reserves

Foreign reserves

United States dollar

Balance of trade

Bank regulation

Euro

Currency

International dollar

Dollar

Free trade

Monetary policy of central banks

Monetary Policy

United States Notes

Hong Kong dollar

Store of value

	Reserve currency - Wikipedia, the free encyclopedia
		A reserve currency (or anchor currency) is a currency which is held in significant quantities by many governments and institutions as part of their foreign exchange reserves.
		The top reserve currency is generally selected by the banking community for the depth, strength, and stability of the economy in which it is used.
		The Euro and the Renminbi are both candidates to displace the dollar as the predominant reserve currency as their areas of application enlarge (through EU expansion in the case of the euro, and domestic growth in China).
	en.wikipedia.org /wiki/Reserve_currency (480 words)

	Currency Board Homepage (Site not responding. Last check: 2007-10-22)
		Under a currency board system, however, unlike the practice when a country has a central bank, the commercial banks may be allowed, or even required, to hold much or all of their reserves (other than vault cash) in the form of the reserve currency.
		A currency board is a monetary authority that issues notes and coins convertible into a foreign anchor currency or commodity (also called the reserve currency) at a truly fixed rate and on demand.
		A currency board is defined as a monetary institution that issues base money fully backed by a foreign "anchor" or reserve currency, and fully convertible into the reserve currency at a fixed rate on demand.
	politics.ankara.edu.tr /~kibritci/curboard.html (2851 words)

	Currency Boards Introduction
		Currency boards normally aim to hold a somewhat larger value of assets than the value of their liabilities in order to guard against the risk that the market value of their assets will diminish--for example, due to a rise in interest rates in the reserve-currency country.
		Their other reserves may take the form either of liquid holdings of the reserve currency (this was the traditional practice, considered by some currency board advocates to be a key feature of a "pure" currency board) or of deposits at the currency board (shown by the parenthetical entry in the T-account).
		Unlike a pure currency board, commercial banks continued to be required to hold their reserves at the central bank, and the central bank remained responsible for bank supervision and for the health of the banking system.
	www.usd.edu /~kramakr/curr_iie_intro.htm (4049 words)

	Oct 12 $$$ When Currency Empires Fall Professor Avinash Persaud 321gold
		A necessary condition of a currency becoming a reserve currency appears to be its breadth of use, and cost and ease of transaction, not, as some might think, the ability to hold its value.
		Clearly hyperinflation would not serve a reserve currency well, and there are currencies that have become reserve currencies by virtue of economic size, that have ended their reign through inflation.
		By the 1960s, the dollar had usurped sterling and was the world's new reserve currency with 60% of total central bank reserves being held in dollars, twice the level of sterling reserves.
	www.321gold.com /editorials/persaud/persaud101204.html (2263 words)

	Currency Competition - Global Business - CFO.com
		Two costly wars and two episodes of currency devaluation in Britain later, the dollar was unchallenged as the world's chief reserve currency.
		Reserve currencies need to have a home economy with a large share of global output, trade, and finance.
		Confidence in the value of the currency is also an important requirement, and this is where critics of the dollar have mostly taken aim.
	www.cfo.com /article.cfm/4480038?f=home_featured (696 words)

	The World's Reserve Currency (tdctrade.com)
		The paper gives a brief account of the long history of reserve currencies and draws attention to the interesting phenomenon that, as in the case of the position of a country being the superpower of the world, it seems to be a "natural cycle" of around 100 years long.
		What is clear, however, is that the economy of the reserve currency of the world is currently facing structural problems, which have been described, even in the home jurisdiction, as serious and unsustainable, and are causing worldwide concern, particularly at the policy level.
		There is a case, for convenience and for the further promotion of closer economic relationship, for the much greater use of the renminbi as the currency for settling trade transactions between the Mainland and its trading partners, without having to go through the US dollar.
	www.tdctrade.com /econforum/hkma/hkma050101.htm (815 words)

	Currency Crises and Capital Flight
		The reserve is a stockpile of assets denominated in the reserve currency.
		If a country cannot acquire additional reserves, and if it does not change domestic policies in a way that causes excess demand for foreign currency to cease or reverse, then the country will run out of foreign reserves and will no longer be able to maintain a credible fixed exchange rate.
		When the currency is devalued, the rate of return on foreign assets may fall, especially if investors had anticipated a devaluation and had adjusted their expectations accordingly.
	internationalecon.com /v1.0/Finance/ch90/F90-5.html (1849 words)

	Multiple reserve currency system -DAWN - Business; 12 December, 2004
		The reserve currency with a stable value is a national unit of a leading economy which avoids inflation.
		Mr Saqib reckons that euro may emerge as an alternate reserve currency as eurozone is the biggest exporting area in the world.
		The future of the dollar as a reserve currency, anchor of global trade and a store of value is now coming under increasing scrutiny as a result growing US budget, trade and balance of payments deficits.
	www.dawn.com /2004/12/12/ebr5.htm (621 words)

	Reserve Currency
		In a recent study of international business practices regarding currency exchange rate fluctuations, it is a surprise that most businesses engaged in international trade do not in fact take any extraordinary measures to isolate themselves from the negative effects of exchange rate changes.
		Even though the dollar is overvalued, it is impossible for the United States to suffer a currency crisis of the sort experienced by Asian countries in the late 1990's or Latin American countries seemingly once a decade.
		A reserve currency is "a foreign currency held by a central bank or monetary authority for the purposes of exchange intervention and the settlement of intergovernmental claims."
	mg.blogs.com /reserve (2265 words)

	Reserve Currency Standard
		In the gold standard the central bank held gold to exchange for its own currency, with a reserve currency standard it must hold a stock of the reserve currency.
		Always, the reserve currency is the currency to which the country fixes.
		Most countries that fix its exchange rate will fix to a currency that either is prominently used in international transactions or is the currency of a major trading partner.
	internationalecon.com /v1.0/Finance/ch80/F80-3.html (274 words)

	Dollar is a world's reserve currency
		In the next few years, the dollar will remain the world's reserve currency, said participants in the roundtable held in RIA Novosti on Monday.
		He noted that the dollar remained not only a reserve currency for many countries but also a means of payment in oil trade.
		Belousov, if oil trade is gradually transferred to a different currency, then the rate of the dollar will adequately change.
	www.russiannewsroom.com /send.aspx?id=2392 (235 words)

	ipedia.com: United States dollar Article (Site not responding. Last check: 2007-10-22)
		As of April 2004 nearly 700 G$ [1] was in circulation, with an estimated half to two-thirds of it still being held overseas [1].
		Today, like the currency of most nations, the dollar is fiat money without intrinsic value, which means that it has no backing and would be entirely worthless but for the fact that people have been persuaded to use and accept it as if it had worth.
		In contrast to the currency notes of many other countries, all Federal Reserve notes are the same colors (fl with green highlights on the front, and green on the back), nothwithstanding the recent introduction of a new $20 bill whose front includes text that is a gradient from blue to peach.
	www.ipedia.com /united_states_dollar.html (3377 words)

	Asia Times Online :: Asian news and current affairs
		The reserve currency of the 18th and 19th century was undoubtedly the British pound sterling.
		China is still some distance away from liberalizing its currency controls, not least for the reason that its financial sector is still in its infancy.
		Staying with dollar-based prices - which could mean using the currency of a third country that is primarily known for its huge amount of debt and no plausible recipe for a turnaround - could become too costly a way for others to conduct their bilateral trade.
	www.atimes.com /atimes/Global_Economy/GE24Dj03.html (1031 words)

	Six Kinds of United States Paper Currency
		The device of "National Currency" did make the notes obligations of the Treasury, which meant they were good even if the banks failed; but why the solvency of the banks otherwise was thought to be a federal concern, when the States were perfectly capable of regulating their own banks, is a good question.
		Thus the Federal Reserve Bank Note $5 of Series 1914 simply displaced the portrait of Lincoln to the side from the contemporaneous Federal Reserve Note $5 and replaced it in the center, as in National Bank Notes, with the name of the bank.
		Fractional reserve banking cannot be "fraudulent" when there is nothing secret about it and when it is clear that people would have to pay for banks to hold their savings with 100% reserves, while banks will pay them for savings that can be (prudently) loaned to others.
	www.friesian.com /notes.htm (6080 words)

	ISN Security Watch - Dollar losing favor as worldâs reserve currency
		On 24 February, Bahrain's central-bank governor said the euro is increasingly emerging as an international reserve currency.
		Ashraf Laidi, a currency analyst in New York, said it was clear why "diversification", a trend by countries to hold more of their reserves in currencies other than the dollar, was a hot topic just now.
		But currency traders have reason to believe the move is under way, albeit in a gradual manner." To be sure, not all players are diversifying.
	www.isn.ethz.ch /news/sw/details.cfm?ID=10839 (757 words)

	Mar 03 The World's Reserve Currency Craig Harris 321gold
		The second source of competition comes from other fiat currencies, and the interesting thing there is that all fiat currencies are engaged in a sort of competitive devaluation against each other.
		In other words, the US dollar as the worlds reserve currency is being called into question because the US is acting like a dictator to the world and an empire rather than a cooperative global economic citizen.
		In my opinion, if foreign countries were to ask to transact oil in a currency other than US dollars, it would not be long before the US dollar lost it's status as the worlds reserve currency.
	www.321gold.com /editorials/harris/harris030304.html (1875 words)

	Safe Haven \| The U.S. Dollar's Days as the World's Reserve Currency are Numbered
		In the 20th Century, the U.S. dollar became the world's reserve currency because it was the coin of the world's leading economy.
		The main reason that the US dollar is still the world's reserve currency is that few understand how completely the fabric of the American economy has been rewoven.
		Recent trial balloons launched by various Asian central banks, concerning diversifying their foreign exchange reserves; indicate that the dollar's reserve currency status may already be at risk.
	www.safehaven.com /article-2758.htm (944 words)

	Euro Trash - Even drug dealers are giving up on the dollar. By Daniel Gross
		Clearly, currency traders have made a long-term judgment about the relative value of the currencies of the Old and New Worlds.
		The United States benefits greatly from the fact that the dollar is the world's reserve currency.
		The same month, Fidel Castro declared that the dollar, which is tolerated as a means for Cuban-Americans to support their relatives in Cuba, was officially currency non grata and that the euro was most welcome.
	www.slate.com /id/2111504 (805 words)

	Reserve currency allocation: an alternative methodology
		Assuming that the central bank's performance objectives are defined in terms of ex post returns in different currency numeraires, the currency allocation problem is formulated as a multi-objective optimisation problem.
		The advantage of the proposed methodology is that it does not require any explicit assumptions about the risk preferences of the central bank or knowledge of the currency numeraire.
		Using some proxy values for the possible range of ex post returns measured in different currency numeraires, the study shows how the currency allocation problem can be solved.
	www.bis.org /publ/work72.htm (205 words)

	The Dollar As An International Reserve Currency (Site not responding. Last check: 2007-10-22)
		While I do not profess to be a major economic policy wonk, I do understand the basics of macroeconomics and the fact that, throughout the history of man, there has always been a reserve currency of some type.
		However, the United States has taken that position over; it is now the reserve currency.
		Put another way, because it is the most circulated form of exchange it has been designated as the currency people want to see the most when they do business.
	mywebpages.comcast.net /m-kollar/Thoughts/ideology/03.htm (1309 words)

	US Dollar Losing Its Position As Asia's Reserve Currency
		North-East Asian central banks have turned away from US dollar foreign exchange reserves, accelerating the US dollar's fall and boosting the euro's claim to become the world's second reserve currency.
		Westpac's currency strategist, Robert Rennie, said the euro's surge through the $US1 barrier on Monday night was propelled in part by buying from North-East Asia.
		The four central banks have accumulated massive foreign reserves because of growing trade surpluses and unprecedented inflows of foreign direct investment (particularly to China).
	www.rense.com /general27/rec.htm (449 words)

	05/07/02 - No-Think Nation III: Time Running Out for the Dollar?
		Perhaps the most important is that the dollar is the world’s reserve currency.
		In addition, in many countries the dollar is not only the preferred currency for daily transactions but also the required one for major purchases.
		Gold has not been a good investment and is costly to hold, especially during the last 20 years of rising values of U.S. financial assets.
	www.vdare.com /roberts/no_think3.htm (760 words)

	BBC NEWS \| Business \| Why the dollar is king (Site not responding. Last check: 2007-10-22)
		The US dollar is probably the most widely recognised currency in the world - it's accepted universally and most internationally traded goods and commodities are priced in dollars.
		So the dollar became a de facto world currency - several countries, particularly in South America, use it in parallel with their own own currencies - so-called dollarisation.
		The biggest problem for the US, and the reason that dollars "disappear" is that the dollar has become the most prolific international currency.
	news.bbc.co.uk /1/hi/business/3178446.stm (387 words)

	Economist's View: Will the Dollar Lose Its Position as the Dominant Reserve Currency?
		How the dollar might lose its status as the world's main reserve currency, The Economist: Once a decade or so, economists ask whether the dollar's reign as the world's number one reserve currency might be at the start of a slow decline.
		But in the years after 1914, Britain switched from net creditor to net debtor, and by the 1920s the dollar was the only currency convertible to gold...
		He argues that both Europe and America “have strong institutions, respect for property rights, and sound macroeconomic policies relative to the rest of the world.” In China, by contrast, capital controls, financial markets that are neither very liquid nor transparent, and uncertainty about property rights make the yuan an unlikely contender for decades to come...
	economistsview.typepad.com /economistsview/2005/09/will_the_dollar.html (873 words)

	Stiglitz predicts dollar will cease to be world's reserve currency. - Gold & Silver Forum
		This exchange rate instability is therefore as destructive to a currency's suitability to be a reserve currency as inflation is."
		Stiglitz said the dollar's right to reserve currency status cannot be taken for granted, and its loss of this status is likely.
		The currency component of M1 is around $701 billion....
	www.goldismoney.info /forums/showthread.php?p=100672 (1513 words)

	reserve_currency - OneLook Dictionary Search
		Tip: Click on the first link on a line below to go directly to a page where "reserve currency" is defined.
		Reserve Currency : AMEX Dictionary of Financial Risk Management [home, info]
		Reserve currency : Deardorff's Glossary of International Economics [home, info]
	www.onelook.com /?w=reserve_currency&loc=resrd (143 words)

	Liberty Silver Money
		Of course all the disciplines of the gold and silver currency - the interlocking check and balances, audits, and ultra high security devices that I had designed into the original currency system - remained the same.
		As the new currency is a privately issued, it does not consider itself above the law.
		Plus the Liberty Dollar is truly a valuable currency and will increase in value as the US dollar depreciates in the future.
	www.libertydollar.org (4052 words)

Try your search on: Qwika (all wikis)