Russian President Dmitry Medvedev said late on Tuesday that the world needs more reserve currencies and that continued reliance on the US Dollar for this role could ultimately hurt the global economy even further.
Medvedev’s comments, although a toned down version of his October 2008 comments that called for Europe to “freeze” out the US, continued to show a pattern of systematic bashing of the US’s status.
More and more we have been hearing about major power players, like Russia and China, making subtle, out of context jabs at the US’s role in the global economy, in a targeted plan to devalue not the Dollar, as that would hurt too many countries with large greenback reserves, but the US itself.
This point was confirmed as China, South Korea and India declared on Wednesday that they will continue to invest in the Dollar, even though the Chinese remarks did include some swipes at the political might the US has demonstrated as of late.
I am sure, as many
Forex Online traders are, that the only reason why there was no outright Dollar trashing by China and Russia is because they fear what will happen to their Rubles and Renminbi’s if the Dollar were to collapse. Between the two countries, they hold over 2 Trillion Dollars in hard cash, and long term debt. But, that is no to say that they wouldn’t like to find a “safe” way to divest.
Russian President Dmitry Medvedev Comments on Currency Market
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