Re:Saudi Arabia threatens to ditch dollar oil trades to stop...
by gumby on Friday April 05, 2019 @10:47AM
(#19583038)
> This includes the desire to make Russian Rouble one of the world's currencies.
This is simply bluster. Russia’s economy is about the size of Australia’s. Even the EU, with GDP comparable to the USA (and 10X Russia’s) hasn’t made any headway in the oil market, much less as a reserve currency.
Actually the value of being a reserve currency is mostly overstated. The US still has that status mainly due to the size and liquidity of its debt, and to a lesser extent, equity market. Even when a comparable rival does eventually emerge, hysteresis will keep the dollar on top for a long while. The same history applied to sterling when it was the world’s reserve currency.
This is simply bluster. Russia’s economy is about the size of Australia’s. Even the EU, with GDP comparable to the USA (and 10X Russia’s) hasn’t made any headway in the oil market, much less as a reserve currency.
Actually the value of being a reserve currency is mostly overstated. The US still has that status mainly due to the size and liquidity of its debt, and to a lesser extent, equity market. Even when a comparable rival does eventually emerge, hysteresis will keep the dollar on top for a long while. The same history applied to sterling when it was the world’s reserve currency.