MY POSTS ON FACEBOOK – US Dollar:
July 19, 2014
US Dollar: The economic world has revolved around the USD for too long. Its high time we de link from it and form pacts with countries to have bilateral pacts to deal with each other in our own currencies. This will release dependence on Dollar linked trade. Our currencies fluctuate based on the dollar rate and that’s not necessarily good.
This is an important economics matter. India has suffered negative dollar balance of payments from inception. The U.S Dollar ruled the world and continues to do so. I have been speaking and writing often that the way out of the Dollar trap is to trade with most countries in our own bilateral currencies. For e.g. If we import/export with China; why do we need a third currency viz. The US Dollar?
In the past we had such arrangements with USSR and Iran. Such bilateral trade will greatly reduce world dependence on the U.S and its currency.