The American dollar has long been considered one of the fundamental cornerstones of the foreign currency exchange market but its position has slipped of late and other currencies are beginning to stake their claim to be foreign currency top dog.
According to a recent report on the BBC website, the dollar’s popularity in the currency exchange market is on the wane but, in a historical sense, it is not uncommon for foreign currencies to experience peaks and troughs in relation to their popularity. For example, sterling was the major force in the 18th and 19th centuries across large swathes of the world but in more recent times had found itself in the shadow of the dollar somewhat in the currency exchange market but other foreign currencies are vying for the dollar’s position at the top of the currency tree. It goes without saying that the foreign currency exchange market is an incredibly complex beast and this is why all savvy Brits will turn to the expertise of specialists in the field when it comes to making the most of their currency transactions, particularly large level transactions.
Exploring the Dollar’s Position in the Currency Exchange Market
China recently put forward suggestions for a global currency which, despite being currently unrealistic, did cause analysts to look at the way in which the currency exchange markets are performing. The dollar’s strength in the foreign exchange market stems from just how extensive its use is globally and, according to the report on the BBC, the second most traded currency, the euro, has never really given any indication that it can compete on the same level globally as the dollar. Speaking to the BBC, leading economist, Mark Williams, states, “If the euro falls short, it is hard to see markets for assets denominated in a new currency ever becoming developed enough for it to have a chance of dislodging the dollar”. The ways in which the foreign currency exchange markets fluctuate is obviously of much interest to those who make regular overseas transactions and professional advice should always be sought for any substantial exchange of foreign currency.
Dollar’s Strength in Depth key to its Survival
The dollar’s position in the foreign currency exchange market is significantly helped by the fact that most countries view the dollar as their reserve currency and the vast majority of reserves are held in dollars. The foreign exchange market is sure to undergo a great many changes in the remaining months of 2009 and the best way to stay one step ahead of the game is to speak to the requisite professionals in the field of foreign currency exchange and overseas transactions.
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