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Is hard currency on its way out? Introducing the new virtual world currency.
Key Excerpts from Article on Website of Christian Science Monitor
Posted: November 8th, 2010
http://www.csmonitor.com/Business/The-Daily-Reckoning/2010/1...
When discussing reserve currency alternatives to the US dollar, conversation almost inevitably returns to the International Monetary Funds synthetic reserve asset, the Special Drawing Right (SDR). However, the SDR basket of currencies is noticeably antiquated in its design, including only the currencies of industrialized nations. This week, foreign exchange manager Overlay Asset Management [OAM] has announced a currency basket its launching in order to offer a more up-to-date virtual world reserve currency. According to the Financial Times: [OAMs] Wealth Preservation Currency Index consists of the currencies of the worlds 15 largest economies, weighted by their gross domestic product, adjusted for purchasing power parity. Overlays rationale is that investment portfolios are often heavily exposed to the dollar, but many investors have doubts as to whether the greenback can retain its value and remain the worlds primary reserve currency. The global currency war as many are calling it continues to heat up, with no obvious resolution in sight. While it wouldnt be a simple, quick, or painless process to replace the US dollar as reserve currency, it seems inevitable that calls for just such action are bound to increase, especially if currently loose US monetary policy ... continues unabated.
Note: You can read more details in Financial Times coverage of how a new world currency index has launched.
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