Will USD survive?

At the moment we can observe the fall of USD against almost all main currencies-“rivals”. There are a lot of reasons for that, but the main one, which is not well-known among the traders and Forex signals providers, is the article in “The independent”. No, it wasn’t an interview with some head of a bank or something like that. It was a report that France, Russia, China, Japan, Brazil, India and the countries of Persian Gulf are developing the plan of refusal from USD in pricing oil.

The report reads that some secret meetings between Ministers of Finance and heads of the central banks have been held recently. As the result the decision that USD prices for oil will be replaced by a new basket of currencies was taken. The basket will probably include Euro, Russian rouble, Japanese yen, Chinese yuan, and a new united currency of the Persian gulf countries (Saudi Arabia, the United Arab Emirates, Kuwait and Qatar), which is only planned and developed at the moment.

Frankly speaking, it’s very interesting news. At first it was a real shock for all Forex signals providers and traders, because noone expected such development of the situation. But one of the most interesting things is that China is interested in falling and rising of USD at the same time. The Chinese economy is suppressed by really great amount of amount of bucks and foreign investments in that currency. Chinese government would like US Dollars to become weaker and some part of them was driven away from the country. But at the same time the Chinese understand that nowadays about 2/3 of their national reserve is kept in dollars and a strong fall of USD on Forex market will bring Chinese economics down in a moment. An interesting situation, isn’t it?

The replacement of dollar by the new basket of currencies is planned to be finished by 2018.
Such information was confirmed in bank circles of Persian Gulf counties and in China. It’s considered, that Russia will join that coalition in order to make its currency stronger and to end the domination of USD in the world trading.

So, that may turn out to be the end for USD. Some analysts have predicted that even long ago. The American government should certainly do their best in order to improve economical situation and preserve their currency from complete fall down, because that will simply kill the American economy.