SocraticGadfly: The Euro: eroding the era of “dollar diplomacy”?

December 29, 2006

The Euro: eroding the era of “dollar diplomacy”?

The Euro now makes up 24 percent of world foreign currency reserves, an astonishing number for a 5-year-old currency that had many detractors at the time of its introduction.

And, many countries, including China and some Gulf oil states, are looking at increasing their Euro holdings.

It sounds like more and more foreign currency traders see opportunities to leverage the two against each other. Will we have a George Soros making a major run on dollars, or Euros, instead of southeast Asian currency, in the future?

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