blog image 17.09.2020

Whether the dollar will devalue. We understand and analyze

Whether the dollar will devalue. We understand and analyze

Greetings to all, dear friends!

In 1944, the Bretton woods conference was held, at which the dollar was recognized as the reserve currency of the world and backed by gold. The dollar has become with universal currency, the United States has gained a huge advantage in the international market. All this was due to the fact that Europe was then in a terrible economic state.

The standard was adopted - 35 dollars for 1 Troy ounce of gold

After many years the dollar has ceased to be pegged to gold and everyone who is not lazy predicts its collapse. You probably saw a lot of ads and all sorts of statements on the topic that the dollar will devalue or its exchange rate will decrease. That many countries will give up the dollar and it will come to an end.

All this is due to the fact that, that the US Federal reserve is pouring huge amounts of money into supporting the economy, thus the dollar can lose value. The price of oil and demand for many goods are falling.

But, you need to understand that the dollar will not disappear. Its purchasing power may decline, but it will remain, just not become much more than it was. The dollar will not devalue and will not go anywhere, believe me

All countries buy oil for dollars. A huge number of goods countries buy for dollars, or equate to the dollar.
So, personally, I don't believe in statements that the dollar will devalue and it will not be, this is unrealistic.

If you doubt and believe that everyone will give up the dollar and it will devalue, then look at the history - it has always been and will always be in value.

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