The End of Dollar Hegemony ?

On the April, 02 2009, the G20 summit will be organized. I think, this summit will draw the line on the direction of the US Dollar. More and more country members are trying to ditch the US Dollar such as the US Dollar ( China calls for full-scale financial system overhaul ). Some has called for the formation of a new currency or using the IMF's SDR ( Special Drawing Reserve ) as a new currency since the value of the currency is calculated based on a basket of currency. Such move will reduce the reliance on US Dollars heavily thus reducing the value of the US Dollar.

This move has been initiated since the US Federal Reserve and it Treasury has resorted to quantitative easing in order to stimulate the dying US economy. Besides the US, other countries has also start to resort to quantitative easing such as UK and Switzerland. SNB has taken such measures to prevent their currency from rising in order to make swiss exports to be competitive in the world market. The US and UK has resort to such move due to failure on bond auction. Therefore, their respective central bank has resort to bought those bonds.

wait and see ............