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3#
发表于 2013-4-3 22:30
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Let me try an explanation.
Lets first understand why USD is a preferred trading currency for international transactions?
Say, you are a cotton exporter in India and you make a shipment to a purchaser in Philippines. If the purchaser pays you in his local currency ‘Peso’, will you accept it? Probably Not. Because, ‘Peso’ do not have enough liquidity in Currency Markets. Means, there is a higher bidask spread for conversion between PHP (Philippine Peso) and INR (Indian Rupee). Meaning, if you accept Peso, you end up with having lower net INR amount.
Because, USD is much more liquid and acceptable globally, it becomes the currency for trading and also as a store of foreign exchange reserves for countries.
But this makes foreign govts too much dependent on USD. Their value of reserves becomes too much dependent on US Fed’s policies and competency.
So, to avoid having too much dependence on a single currency, IMF had come up with an artificial currency SDR, which is a basket of 4 currencies (USD included) in some fixed weights. But to my knowledge, SDRs did not pick up to the extent they were intended for and USD remained being used as International Trade Currency. Now, in the changed times, when USD is exposed to risk of a major fall, SDRs may gain their usage. |
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