As the United States government is already bankrupt and keeps printing money to meet it’s social responsibilities to the people, and to keep government running. Countries around the world have looked elsewhere to park their money and invest.
Every time the Federal Exchange prints more U.S dollar, it dilutes the dollar and therefore devalues the dollar making it more worthless.
This deals another blow to the U.S. dollar’s status as the world’s reserve currency. Nigeria isn’t the first to invest into China’s yuan . The Philippines and Hong Kong too have discussed expanding yuan reserves for political favour and capture long-term currency appreciation.
I believe more countries will move away from the U.S dollar as America will have to print more money to try to get out of the great recession. Only time will tell.
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