What Will Happen to the U.S. Dollar Essay

1680 Words 7 Pages
This essay wants to present some of the dilemmas of what could possible happen with the dollar. This is a topic that comes up especially in the business arena because it is related with risk and affects the operations and profitability in the short and in the long run. However factors such us stability, acceptability and anonymity are the principal factors why the U.S. dollar was, is, and will be the world's currency of choice; however the last developments in the global markets could indicate that the dollar or any other currency cannot be "currency of choice" forever specially in a globalized Market. Considerations
The principal requirement to determine if a Currency Money is acceptable is the implicit trust in it. After many market
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This is one of the explanations, why it has become so popular and how U.S. dollars move in and out of the United States.
To have a better understanding of these processes, the next graphic will illustrate how dollarization affects direct or indirect way the international economy and the countries involved around the world.

The exchange Market
While many people associate dollarization with the U.S. dollar, the association is not exclusive. The euro, British pound, Russian ruble, New Zealand dollar and Australian dollar are also accepted outside their countries; although in a localized nature. For example, the Russian ruble is accepted in a number of countries from the old Soviet Union; but other aspect that create discussions is the fact of how China may have prompted some interest in the subject: “. . . it is perhaps a good time for the befuddled world to start considering building a de-Americanized world,” wrote Liu Chang for China’s official news agency Xinhua.
With the U.S. recent crisis, and the 2011 credit rating downgrade, United States finances does not look very good for many. However to explain the meaning of the reserve currency status, why it will continue to a large extent, and how the related issues influence the future, it is necessary to understand that countries buy United States Treasury debt not just as an investment,

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