Tuesday, October 6, 2009

Dollar's demise: again, here we are

Put aside that discussions about dollar's demise are the most active exactly around important USD bottoms , here's an excellent reminder about the questions of pricing anything in any currencies.
The most important conclusion :
Dollars are held (or not held) for reasons totally unrelated to pricing unit. Some of those reasons are political, some are based on sentiment, some on trade patterns and trade relationships, and some to suppress the value of local currencies to improve exports.

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