Will the dollar fall and how much?
Will the dollar collapse? Is it worth keeping your money in dollars? In what currency to keep your savings? How to keep your money from inflation. Which of the currencies is the best and more reliable? The future of the dollar
What is the forecast for the dollar?
Undoubtedly, the dollar has won a good position in the market, but like any currency, the dollar can also depreciate quickly.. An overly bloated economy, large budget deficits in the United States are still pushing the dollar to fall.
And although the unstable euro is also losing weight, a significant drop in the dollar is predicted against the euro.. Despite all its shortcomings, the euro is the second currency in the world, as a reserve currency, in which they prefer to store their capital, in addition to the dollar..
Currently dollar rate determined at the auction, but before 1971 year, the dollar exchange rate was not free and was regulated by state financial institutions in the United States. At the moment, there is no significant government influence on the dollar exchange rate, and the dollar grows if there is an increased demand for it and there are more buyers than sellers. The dollar falls if there are more sellers than buyers.
Is it possible that the dollar will collapse ?
What determines the dollar exchange rate?
The dollar is affected by the balance of exports / US imports, investment in the external economy and the country s huge external debt, which is growing at a fast pace. These factors undermine the credibility of the dollar and affect the interest of buyers.. But still rumors about the dollar falling for many years ahead of events and often do not come true, than they have solid ground. The dollar is not going to rapidly collapse. The fact is that none of the world s currencies is yet capable of performing the functions that the dollar now performs as an international currency.. In the last ten years alone, the dollar has lost more than 40 % in price. However, the economic the crisis supported the dollarwhen real estate was plummeting in value and the dollar was coming up in order to preserve capital. To preserve capital, investors around the world, especially from Brazil, China and Russia, keep dollars in their currency baskets, and this also supports the dollar exchange rate.. In addition to the dollar, such baskets include major currencies, and the US dollar has an overwhelming weight in them..
In what currency to keep your savings?
How to store savings, in dollars or euros? Let s say you earned some money, there was an opportunity to postpone it for a rainy day, or you decided to save money. So, if you keep rub, you will quickly notice that the price of goods is running away from your accumulation.. It s just inflation that eats your money. After such an experience, people give up their savings in rub and switch to dollars or euro. And many already know the first rule: Do not keep all your eggs in one basket and to keep your savings for a long time it is better to keep several currencies. Usually these are US dollars and euros, less often yuan, pound, Canadian dollar and yen. At the same time, periodically changing the ratio of currencies in the basket, you can not only save capital, but also increase. Please note that capital preservation is only in currencies - not a very good decision, since all currencies lose weight. Let them be a haven of capital for the short term.
For many hundreds of years, gold was the most reliable for saving capital.. When currencies appeared, they were equated to a certain amount of gold.. Coins were often made of gold and were very suitable for savings.. At the moment, everything has changed and the direct link currency/gold - rare case. Gold has an undeniable advantage in the accumulation and preservation of capital: Unlike modern currencies, gold cannot, for example, fall in price over a year in 10 - 100 once.
Forecasts and the collapse of the dollar
As known, dollar today not directly backed by gold as before. According to various sources, the dollar rate - a bloated soap bubble that, according to forecasts, should have burst many years ago, but, as we can see, the dollar is in perfect order.
It s not hard to understand what is the future of the dollar. Most likely, the dollar will also softly lose % year after year and it does not seem at all that it will collapse, even if it is not backed by gold one to one and it does not matter what is there with the soap bubble. This currency will be at the center of events as there is no more reliable alternative currency in the world yet..
Young currency - the future of the euro
The euro is going through tough times and Europe is full of problems that the US does not have.: in the countries of the Eurozone, internal instability, financial crisis and also large external debt.
Of course the euro as the world s universal currency - a great idea, however, there is a quiet struggle between the euro and the dollar, because if the euro positions grow, the dollar loses its position, on which the US economy depends. Moreover, the financial crisis in the United States is of little interest to anyone, since it will collapse the financial situation in many countries, many of which are the most developed, and they all depend on the dollar exchange rate. Be that as it may, the euro raises its head, but it stretches for years, which will suit everyone.. There is a threat of competition from the euro for the dollar, but the countries that were united by the euro still have many problems.
The future of the dollar
Did the dollar fall much earlier ? - This happened more than once when the dollar was on the verge of collapse, and had to take very serious measures to keep its rate stable. Currently, the US financial system is able to support the dollar exchange rate, which it does well due to the country s development and is likely to succeed in the future..
Why, if the dollar - soap bubble and the dollar exchange rate may collapse sooner or later, why not keep your savings in gold? The thing is that many investors have already invested their capital in gold, so the price of gold is also somewhat inflated.. Look at dollar price dynamics graph and gold on this site. Per 10 years, the dollar fell against gold by more than 100%.
Update the chart of the dollar against the ruble at this moment
