According to IMF’s Currency Composition of Official Foreign Exchange Reserves (COFER) database, US dollar remains the preferred reserve currency. In the fourth quarter of 2011, the dollar made up 62.1% of official reserves. The dollar accounted for 61.4% of official reserves in 2011 vs. 61.8% in 2010 and 62% in 2009.
See the chart below.
(graph courtesy of Northern Trust)
“You are all in denial. By any objective measure the euro is a failure. And who exactly is responsible, who is in charge out of all you lot? The answer is none of you because none of you have been elected; none of you have any democratic legitimacy for the roles you currently hold within this crisis.”
Chris Wood shares his insights on what’s likely the endgame of European sovereign debt crisis.
He predicts it will be either a move from monetary union to fiscal union, or a complete breakdown of the Euro. He thinks the first scenario is more likely and Germany will eventually budge.
Then, Jim Rogers comes in with his thoughts:
Barry Eichengreen, an economics professor at Berkeley, also a historian in international monetary system, shares his view on what the world currency system will look like by 2020.
Ray Dalio, founder & CIO of Bridgewater Associates, runs the world’s largest hedge fund with $89 billion under management, returning more for the fund’s investors last year than Google, Amazon, Yahoo and eBay combined.
In this CNBC interview, Dalio shares his view on the US dollar, world investment outlook, the ongoing great deleveraging and the great divergence between the developed vs. developing world.
