Hi MrModesty, Thanks for the comments. Reserve currencies have changed over time eg between WW1 and WW 2 Stering and Greenback were both reserve currencies. Prior to WW1 it was Sterling. We may move to a range of currencies, or maybe some with partial gold backing - not 100 % gold but maybe 40- 50 or a range depending on the currency involved. China is buying oil in Yuan backed by gold. You may not have heard of SRI. These are international drawing rights from the IMF and are based upon the big economies with each one’s size a proportion of backing. I think the IMF used them in the GFC allowing countries to draw down these and provide liquidity. They have a ratio of backing by different currencies. Many countries want to move out of the US dollar as they feel Trump and some previous presidents have used it as a weapon in sanctions and penalising countries with different agendas to the US. My comment is not intended to put a political direction or value on this, but rather to answer your question with some information gleaned from different financial commentators. I hope this answers some of your question. I have no economic qualification as my background is in a different area, but SP of commodities are affected by being traded in the current reserve currency.
SAR Price at posting:
$3.28 Sentiment: Hold Disclosure: Held
