Friday, December 11, 2009

Will be US Dollar replaced by Euro or Chinese currency?

For the past six months Dollar has been depreciating against all major currencies. Against Indian Rupee it depreciated from 52 to 46 Rupees. It depreciated against Euro and it depreciated against Major Asian currencies.
There is already a talk among certain coutries like Russia, China, France and etc, to replace US Dollar as World Reserve Currency. They want to trade oil in some other currencies except USD.
The US Economy is growing at a very slower pace for the past ten years when compared to the other Major developing Countries like China and India. The growth rate is likely to be slow for another 5 years in USA.
Even the once mighty Europeon Countries are no longer growing as Asian Countries. The continueous lesser growth or no growth in US and Europeon Economy would surely put China in the Drivers seat in world affairs and World Economy.
The Chinese growth in the past decade is phenomenal. It is vast a country and it is almost equal to the size of USA. Its population is more than 4 times the population of US and their only disadvantage is English, the language spoken and understood in most part of world. Even in that area, they are improving day by day.
Going by the vast potential of Chinese in Military and Economic Might, Chinese currency may replace US Dollar in another  Five or Ten years in the Future.