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Trump’s Economic Era

dollar, a European company still has to convert euros to
dollars for international transactions.

Today, more than 60% of all foreign currency
reserves in the world are in U.S. dollars—but there are
changes on the horizon as some countries are making
mutual agreements. China and Russia have been quietly
arranging to move away from the U.S. dollar over the
past few years. China and Japan struck a deal, which
will promote the use of their currencies when trading
with each other. China and the United Arab Emirates
have agreed to ditch the U.S. dollar and use their
currencies in oil transactions.

When nations demand fewer dollars, the value of
the dollar on the world market declines. The UN
Conference on Trade and Development (UNCTAD) has
declared that the current system is not working, and
countries should replace the system with a new
managed float system.

The standard of living for the average American
will fall when the dollar is no longer the world’s
standard currency because buying power will decline.
When another currency, or a group of currencies, or a
virtual currency, replace the dollar, the demand for the
dollar will subside, and the dollar ’s value will
diminish.

CURRENCY WARS
A country can achieve a competitive advantage
when its currency falls in value relative to other
currencies because its products become less expensive
to foreigners. Therefore, nations may compete in a

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