I know, this sound like a crazy question, but did you ever wonder how the exchange rate will behave in the future? What will happen to the US Dollar, the Euro or the Yuan? Well, I have and I’m going to share my thoughts with you my dear reader.
Though, before we start I need to ask you: Did you ever think about the concept of World Currency? Do you know that there exist non national currencies? Did you hear what happened to the ZWB, the Zimbabwean dollar?
If you are wondering and you are an expatriate, the best exchange rates you will get is the good one.
So let’s see the possibilities here
A world currency appears and the exchange rate disappears
Let’s imagine that the US Dollar starts to be used and recognized in every country of the world. Why would we use any other currency? Nobody would want to have a currency that he can only use in several places. The exchange rate of the dollar against those values would become infinite.
However, rest assured, the others countries will never accept this. Another credible possibility would be that an independent currency, such as gold or silver would become this world currency. Gold is a bad example as gold is complicate to exchange. Crypto-currencies would make the deal.
The Austrian economic movement state it will never happen. If an exchange rate go to the moon, another currency will be used instead, and the currency exchange rate will go down as the bubble explode.
A hundred years of extreme currency fluctuation
An alternative is that the exchange rate will continue to fluctuate but the volatility will explode. Why would that happen? Because trust in currencies is at an extreme low and the next crisis will trigger tremendous consequences. As of today, the currencies are national and linked to much more than just the economy.
To illustrate my statement, I’m practically sure that a group of youtubers or popular bloggers could trigger an economical crisis by lowering the trust in the exchange rate of the Thai Baht for example (THB).
Actually if anyone is interested to be part of this, I know the movement of the anonymous youtubers. There is something going on there.
Before letting you to your thoughts, I would like to open your eyes on another concept: Cultural Currencies. If anyone can issue a currency, some will use national currencies, other worldwide currencies but I would use a cultural currency. A cultural currency is a currency based on a community that you recognize yourself in. The Dogecoin for example was one. I will make a specific post about this in the future.
Ps : To answer one of my first questions, the ZWD just disappeared after his exchange rate went as low as 1USD = 4 500 000 0000 ZWD. Now the dollar reign in Zimbabwe.
Help source : worldbank