What is a super currency?
Super currency is a global currency that can be used as an exchange, supported by a range of reserve currencies from several nations. Also known as multinational or global currency, can be used to denominate international financial transactions and participation in various other financial activities. The proposals to consider such a currency were made on several occasions in the 20th century and during the financial crisis at the beginning of the 21st. Century expanded again. Economists arguing and against the use of a super currency considered a number of potential benefits and pitfalls. While the US dollar is a seemingly monetary unit used on the US market, it is also widely used for international trade transactions. It can also be considered as highly stable, it can also be used as an index or a reference point for financial reporting, exchange courses, D related activities. However, this currency is not supported by a basket of reserve currency from several nations, but only by a federal reserve in the United States.
Critics of the dominance of the US dollar on international financial markets have pointed out that its use as a super currency can be potentially dangerous. When the value of the dollar at the beginning of 2000 fell in response to financial pressures, it threatened a number of financial transactions. Nations such as China have expressed the restlessness of the dollar position and suggested that it could be time to consider creating a formal super currency. These calls were reflected in the government of Russia and some economists who supported their arguments.
Special Drawing Rights (SDR) used by the International Monetary Fund based on the Bretton Woods Agreement were hovered as a possible basis for a super currency. Establish basket, a range of mixed currencies from the Member Nations, used as a basis for a reserve currency. Using this frame, it is possible to create a global currency with a responsibility frame.
Super currency proposals were handled by concerns about the possible impact on inflation. DosageThe introduction of the real global currency can also be unexpected. Problems in the euro area during the 2000 financial crisis. The flight also illustrated some of the pitfalls involved in the use of a common currency for financial transactions and accounting across the national borders.