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Old 05-14-2010, 05:17 AM  
Adraco
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Join Date: May 2009
Location: Onboard an airplane around the globe
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Quote:
Originally Posted by andrej_NDC View Post
I won't even watch the video. If you think the world can have one currency, you have no clue how the economy works. That goes for all others claiming such non-sense.
Good answer! There are too many nations being too proud to gve up their own currency, and most importantly - there are many countries that have mch to gain from having their own currency. What might happen though is that many more international deal might be priced in a different currency than it is today. Of all the business contracts I see and deal with, there are a few in Euros, especially between two companies based in Euro-member-countries. But the absolute vast majority, clearly above 70% of all deal I oversee, negotiate or handle are in US Dollars.

Due to the instability of the dollar lately, more and more clients need to insure their dollar trades, so that they are certain that they will earn from this or that contract. Those currency insurances can be very expensive, eating heavily into their margins, and lately clients have been walking away from deals because the level of uncertainty of the whole deal is so hard to estimate or calculate, or maybe even that they make a guaranteed loss due to heavy currency insurance fees.

Lately I have done deal in both Hong Kong dollars as well as Australian and Canadian dollars with clients who previously did them in USD. That is what might change more and more, a true international currency for all nations? Not likely to happen in my life time, too many have too much to loose from that.
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