Magox Posted July 22, 2009 Share Posted July 22, 2009 Obviously there are many foreign governments that are worried about their dollar holdings, but of course they just can't dump them as it would have negative implications for themselves as well. So they are taking active steps to diversify away from the dollar to not rely on it so heavily, and some of those steps include increasing their gold reserves, buying commodities, introducing currency swap lines amongst each other and most recently buying IMF bonds which is comprised of a basket of different currencies. On August 7th of this month the IMF is voting on a possible move that most likely would have a negative impact on the US dollar, long term. http://blog.newsweek.com/blogs/wealthofnat...the-dollar.aspx Some interesting news today on the currency front. Remember all the hoopla a few months ago about how the dollar was going to be replaced by a wacky new IMF backed currency that went by the acronym “SDR” – or special drawing rights? China was calling for the new system, and U.S. Treasury Secretary Tim Geithner didn't rule it out. Well, the IMF is now on the verge of taking a big leap towards this new system, with a proposal to increase the supply of these SDRs (which are basically just a bundle of several currencies including the dollar, yen, sterling, and the euro) by eightfold. The IMF will vote on the measure on August 7th and would start issuing the new currency by the end of the month. Link to comment Share on other sites More sharing options...
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