Thursday, February 14, 2008

De Beers and the Dollar

An article that I spotted on my favorite monetary policy/macro-econ/geo-political/financial website - -Allan

Is the greenback's grip slipping?

February 13, 2008 at 4:08 PM EST

The chief executive of jewellery giant De Beers SA made waves this week when he suggested the global diamond industry consider pricing the shiny gems in a currency other than the U.S. dollar.

That comment, from the head of the world's largest diamond company, is the latest in a string of signs that the greenback's glory days could be fading.

A UBS Investment Research report says that while it would be wrong to write off the U.S. dollar as the global reserve currency, its roughly 90-year iron grip on that position is loosening. “The use of the U.S. dollar as an international reserve currency is in decline,” said UBS economist Paul Donovan. continued

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