Will the Asian currency replace the dollar?

In recent years, economists and financial experts are increasingly talking about the idea of creating a single Asian currency. It is assumed that it will become an analog of the euro. Interest in the topic is fueled by the instability of the euro-dollar pair. The Asian Development Bank has already decided to put into circulation an "Asian currency unit", or otherwise the ACU.

Stability indicator

However, it does not matter how the Asian currency is called, the main thing is that it ensures the stability of the economy. It is expected that it will reflect the quotes of monetary units of 30 countries of the region and will be used as an indicator of fluctuations of various regional currencies in relation to the Asian dollar, as well as the US dollar, euro and a number of other convertible currency units. How successful will the Asian currency, whose name ACU, time will tell. Meanwhile, the world financial machine can not boast of stability. Financial crises are disturbing one or another part of the world, triggering a chain reaction in a number of other countries and regions. Who knows, maybe the Asian currency Can really lead the market to a certain balance and will not allow world financial collapse. Wait and see!

It is too early?

The Asian currency has a number of opponents. Most of them note that the US dollar in the world is in demand due to the developed economy of the United States. They justify their negative opinion by the fact that today Asian markets are in a much worse state than the American ones, and their temporary economic success is explained only by exports. In addition, the US dollar (Asian dollar) is freely available in all Asian countries, so there is no special need to exchange it for local currency. All purchases can be made with the help of American money. Thus, it turns out that the Asian currency, most likely, will not be more stable than, for example, the same or the Chinese yuan. So, it will not make sense either. A number of economic experts are inclined to the view that if the countries of Asia so need a single currency, then let them pass to the dollar of the United States of America. By the way, the last year of 2013 was not successful for the Asian region. According to financial analysts, the Asian currency index lost more than 2%. By the way, this is the most significant decrease since 2008. However, this has its logical explanation. When the US Federal Reserve only talked about the possibility of reducing incentives, the market began a large-scale liquidation of the positions of emerging economies, which weakened the currency. The Indonesian rupiah alone failed by 20%.

There are perspectives

However, experts believe that the greater the incentive reduction factor will not play such a significant role, and all investor attention will focus on the promising Asian economies. And they are by far the most promising in the world. Therefore, the current year 2014 may become a golden time for Asian currencies. In any case, all prerequisites for this are.