Tuesday, June 26, 2012

Reserve currency talk - no euro



This chart from JP Morgan shows the dominance of a given reserve currency through history. No reserve currency lasts forever. Power, politics, and finance shift through time. Right now, the dollar will not be supplanted by the Euro anytime soon. The decline of the dollar was often a key point of discussion even a year ago, but those discussions are now dead. This can change again, but right now the dollar is still the currency of choice for investors and central banks. Money has been flowing away from what was thought of as the next best alternative. 

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