Which is more likely to replace the US dollar as the world's backup currency?

1) The Euro
2) The Pound Sterling
3) The Russian Ruble
4) The PRC Renminbi
5) The Japanese Yen
6) The Zambian Kwacha

the Euro is trying but my bet is on the Chinese Yuen

Probably the euro but considering the amount of people who contest bringing the euro into there currency i dont think it would be a good idea personally.

I think the Renminbi is the best bet, but wouldn't it be great if it was the kwacha!

prolly either the euro or the yen..

Euro, most likely
Sterling, don't think so
Ruble, are you kidding?
Renminbi, has a chance
Yen, too small
Kwacha, ha ha.

Definitely the Euro - - - already many countries are no longer accepting US dolalrs as trade currency. The Euro has become the new currency for the oil industry and thus many american dollars are finding their way back home, ergo the fall of the US dollar vs other currencies.

Toodles

It is highly unlikely that there would be any replacement for the US $ in the short run.

This is becuase of a phenemenon called the 'dollar hegemony'.

World trade is now a game in which the US produces dollars and the rest of the world produces things that dollars can buy. The world's interlinked economies no longer trade to capture a comparative advantage; they compete in exports to capture needed dollars to service dollar-denominated foreign debts and to accumulate dollar reserves to sustain the exchange value of their domestic currencies. To prevent speculative and manipulative attacks on their currencies, the world's central banks must acquire and hold dollar reserves in corresponding amounts to their currencies in circulation. The higher the market pressure to devalue a particular currency, the more dollar reserves its central bank must hold. This creates a built-in support for a strong dollar that in turn forces the world's central banks to acquire and hold more dollar reserves, making it stronger. This phenomenon is known as dollar hegemony, which is created by the geopolitically constructed peculiarity that critical commodities, most notably oil, are denominated in dollars. Everyone accepts dollars because dollars can buy oil. The recycling of petro-dollars is the price the US has extracted from oil-producing countries for US tolerance of the oil-exporting cartel since 1973.

By definition, dollar reserves must be invested in US assets, creating a capital-accounts surplus for the US economy. Even after a year of sharp correction, US stock valuation is still at a 25-year high and trading at a 56 percent premium compared with emerging markets.

Nevertheless for any currency to be accepted as a global currency, it should have to following traits -

1) It should a relatively stable currency which is free from market manuplation and excessive government control.

2) International trade can be basically classified into
a) Defense Dealings
b) Oil Dealings
c) Non Oil / Non Defense Dealings

Basically, a global currency is one which can buy oil. Since oil producing nations are a major purchaser of arms, this currency will have to buy weapons too. If it is able to buy oil and arms, it will automatically buy non oil and non arms purchases.

The EURO seems to be the most likely currency that can replace the US $. This is becuase it is collectively backed by strong economies of Germany, France, Italy and the Netherlands. Infact, now a days emerging economies like China and India have started building Euro Reserves as the European Union (EU) is becoming a very important trade partner for them.

However, it seems unlikely that any currency can replace the US $ as a global currency. Probably, the one thing that can propel such a thing is the collapse of the US economy where other countries want to get rid of dollars and switch their foreign reserves to the next best global currency. Assuming they want to swap their reserves from the US $ to the EURO, they would try and sell their dollars to the EU central bank (central body headquartered in Frankfurt, Germany, that controls the European Interest Rate, controls euro supply, provides assets the Euro can buy) and buy Euro in exchange. But then why would the EU central bank want to buy $ when the US economy has collapsed. Its a catch 22 situation.

The Euro because most of Europe is already using it as their national currency.

The PRC Renminbi, as China is the up and coming economic power.

the us dollar is only used as thats where the world bank is and is run from. a change in world currency would only really happen if the world bank were to change hands/location to another country. so which ever country this changed to would most likely install there existing currency. we'd be talking millitary invasion or economic colapse or a combination of the 2 in order for somthing so drastic to occur, so the money would need to be on the PRC renminbi or Euro as these are the 2 next toughest (economicly and military) countries. It could change as a result of choice by the world bank, if perhaps it felt in the future it was benifical, relevant to switch currencies. in this case i wuld go with the euro, its the most wide spread and wold be the easiest to change to as we have new countries joining the eu and the single currency all the time.

The American dollar is here to stay my friend. Countless Americans have givin their lives and will continue to give our lives for the Flag of the United States of America and the good old American Dollar.

never happen. none of the above.

Euro
Not a real replacement but a more realistic 50/50% balance.

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