The Euro

To the dollar it is necessary to watch it under two perspective at the present time: short the one of and the one of long term. In the short term, the dollar has arguments to avoid to continue being debilitated. The high exhibition of the international reserves of the economies developed and emergent to assets denominated in American currency, are one of the elements that a more abrupt fall of the American currency restrains one more. The lack of a global currency also replaces that it plays in favor of the dollar. And the alternative of a basket of currencies not yet well is defined and makes doubt the Central banks. In the long term, the decision is taken. The dollar is lost its reign and probably the economic foundations for it do not consider so. Clear that the macroeconomic foundations matter and will be considered in the valuation of the North American currency although its demand will be reduced based on the demand on the part of the economies, of other currencies like international reserves.

The competition of the alternative currencies will be greater. The Euro will fight by global a participation major although the ability of the BCE will be key to act to the way that makes the EDF in the conduction of the value of the dollar. But the logical obsession of the BCE by the inflation, clears reaction capacity to him as to administer a currency that it tries to fight the leadership to him to the dollar. Other currencies have been written down in the competition. China wants to impose to yuan like international currency, although their little liquidity and the intervention level that suffers, causes that it must wait for time enough and to realise concerted efforts to achieve his objective. In the summit of the G8, the dollar was in center of the debate.