Toronto, Canada (PRWEB) October 29, 2010
Investtechfx reports that the recent status of the U.S. Dollar reflects the decline of its position as the reserve currency of the world and the Central Bank is dropping the Greenback due to its decreasing value and newfound diversification, primarily putting focus on the Canadian and Australian Dollars instead. Investtechfx explores how the fall of the Greenback will impact the global economy and what it means for Canada. http://www.investtechfx.com
Investtechfx the leading ½ pip Forex company offering MetaTrader4 platform states that losing the Greenback will heavily impact the world economy. A recent UN report indicates that over the past 8 years or so, the value of the American Dollar has decreased by a whopping 25%! Additionally, official interest rates are close to 0 and the yields on bonds have been increasingly low. This depletion may have been surprising considering that the U.S. Dollar was always one of the strongest and most relied upon form of currency worldwide, hence its position as the reserve currency of the world. However, following the mortgage crisis and the war on terror resulting in a major economical deficit, it’s no longer shocking that the Greenback is steadily losing its value!
Investtechfx specializing in NDD and STP offering use of EA and Robot trading further states that a July report issued by Morgan Stanley supports the UN report that the U.S. Dollar is steadily losing its status as the reserve currency of the world. Central banks seem to prefer almost anything to the American Dollar these days. In fact, during the first quarter, Central banks have even dropped their allocation to the U.S. Dollar by almost one full percentage point, going from 58.1% to 57.3%! As a result of the after effects of the Financial Crisis which put the U.S. economy in a major deficit, central bankers are losing faith in the Greenback and instead appear to be putting their faith in other dollars, such as the Australian and Canadian, whose allocation has increased one full percentage point to 8.5%.
Investtechfx the leading Forex Company offering ½ pip spreads on the six majors reports that the International Monetary Fund (IMF) will be particularly affected by this decline, as the U.S. Dollar is the reserve currency of the world. The IMF is responsible for reviewing the global financial system, stabilizing international exchange rates and offering financial assistance to other poorer countries in need of it. It works by making loans denominated in U.S. Dollars to countries that have been designated Special Drawing Rights (SDRs) which allows them to withdraw funds in whatever national currency they desire at the daily exchange rate. This loan is intended to restructure and facilitate growth in poverty-ridden countries by providing them with financial aid. It is also offered at a higher leverage. However, the recent reports indicating the decreasing value of the U.S. Dollar has particularly worried those countries who have incurred dollar denominated-debt, as they will have a lot to lose. http://www.investtechfx.com
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