Future of Currency 2020

Generated on 12th March 2010

I see that greatest challenge for the next decade to be a fundamental one – what should the world’s currencies be? Over the last century we have seen the rise of the US dollar as the primary unit of global currency which we use to measure and value much of our relative individual, organisational and national wealth and investments, and through which we exchange, trade and price commodities, businesses, goods and services.The status of the US dollar as the global reserve currency is however under enormous pressure and, with the rise of new currency blocs in the world, many have been asking whether the Euro will emerge as an alternative reserve currency. The 2008-9 financial crisis put enough pressure on the US currency to such an extent that many now see that we need an alternative, but the question is what? Will the US remain as the pre-eminent financial power or will its influence secularly decline stimulated by the recent crisis and its inability to achieve a major technological breakthrough or exercise the necessary conditions for it to remain a reserve currency? And, if we go for an alternative, why would this be the Euro?