I agree with you Venks, that the peg will remain for a while but I think the long term outlook is that many countries will remove the dollar peg. We are seeing a general change in the balance of Power within the industrial nations, Countries such as China, India, Russia and of course the EU are slowly eating away at the dependence of the Finacial and Commercial world on the Dollar.
Major investments/ Takeovers over the last few years have been by non Americam companys, European companies have taken over each other to form major Global Players in the world in so many spheres.
Slowly many countries that have been Dollar pregged, especially alot of Oil producers will start to re think their strategy.
It is sometimes economical sense for some countries to keep their currency low so allowing a growth in Exports and a hopeful growth within their home markets. I beleive the present situation with the dollar is not a deliberate act on the part of the US, the dollar is weak because US goods, Finacial services etc are not so much in demand worldwide, other markets are taking over. There seems to be a tendency worldwide for alot instituions / Countries to remove the Dollar Peg.
I agree with you Venks, that the peg will remain for a while but I think the long term outlook is that many countries will remove the dollar peg. We are seeing a general change in the balance of Power within the industrial nations, Countries such as China, India, Russia and of course the EU are slowly eating away at the dependence of the Finacial and Commercial world on the Dollar.
Major investments/ Takeovers over the last few years have been by non Americam companys, European companies have taken over each other to form major Global Players in the world in so many spheres.
Slowly many countries that have been Dollar pregged, especially alot of Oil producers will start to re think their strategy.
It is sometimes economical sense for some countries to keep their currency low so allowing a growth in Exports and a hopeful growth within their home markets. I beleive the present situation with the dollar is not a deliberate act on the part of the US, the dollar is weak because US goods, Finacial services etc are not so much in demand worldwide, other markets are taking over. There seems to be a tendency worldwide for alot instituions / Countries to remove the Dollar Peg.