• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint

Keeping Up with the Rates

Because of its tremendous power in local life, currency rates are regularly monitored all over the world. Outside the U.S., people watch exchange rates like Americans follow the Dow. In Sri Lanka, taxi drivers can reel off exchange rates as well as New York's foreign exchange desk dealers.

Americans may soon have to as well. As the world becomes more interconnected, the traditional stability Americans have enjoyed from their currency may be eroded. The newly introduced euro might ultimately supersede the U.S. dollar. Many nations rely on the U.S. dollar as a reserve currency, which helps sustain its value. If nations start using the euro for this role, the U.S. dollar could be exposed to unprecedented fluctuation. In the fall of 2004, with the U.S. Congress issuing $800 billion in new debt, the market began to question the U.S.'s “risk-free” status, opening the window for other currencies to fill this void.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint