Heresy Financial: Rumors of the Dollar’s Demise Have Been Greatly Exaggerated

The past few weeks have seen a number of rumors about the role of the U.S. dollar in international trading. Russia announced it was ending dollar (and Euro) trading on its stock exchange.

There was talk of Saudi Arabia ending global oil trading in dollars as well. That rumor has been false. However, Saudi Arabia has allowed oil to trade in other currencies besides the dollar over the years. Either way, these rumors point to a major potential global change.

Meanwhile, the U.S. dollar currently acts as the world’s reserve currency. For most around the world, the dollar is much less inflationary than their home currency. And it’s the most common currency for settling payments in global trade.

Some nations are working to expand the acceptance of their own currency. Or engaging in more bilateral trade, bypassing the use of the dollar.

Meanwhile, the less the dollar is used or accepted globally, the more danger that poses for everyday Americans.

That’s because less global demand for dollars could mean the full impact of inflation is felt at home. Without the dollar spread around the world, the costs of America’s soaring budget deficits could mean more pain.

So is the dollar dying? No. Is the dollar being gradually phased out as a global standard of trade? Yes.

To view the full explanation of how the dollar isn’t dying, click here.