The Bretton Woods years became increasingly characterized by the evasion of capital controls, and the credibility of the system was undermined by a series of speculative attacks against nondollar
currencies, and repeated parity adjustments against the dollar throughout the 1950s and 1960s.
That group has called for the introduction of a new international currency, the creation of credit mechanisms in local, nondollar
currencies, and petroleum sales outside the petrodollar system.
Similarly, prohibiting state and Federal taxes on any precious metals used as a medium of exchange would enhance private citizens' ability to use nondollar
Within the same market, it may be worth using interest rates in other currencies since one can control for nondollar
, nonliquidity factors, such as policies and risk.
With the resulting increased demand by yuan-asset holders for nondollar
assets, the yuan's value would likely decline.
FIIs are preferring nondollar
assets to the dollardenominated ones, with the confidence in the US economy waning," Thunuguntla said.
But as this overall global risk aversion has ebbed, the risk calculus has turned and the dollar itself has become more dangerous to hold than nondollar
international transactions do not go through the United States.
dollars, less expensive (16) in nondollar
countries, encouraging their
banks' liabilities payable in foreign currencies increased $120.4 billion to $279.2 billion, reflecting a sharp increase in short-term loans and some nondollar
The way in which the depreciating dollar is supposed to impact upon Saudi inflation is through the cost of imports from nondollar
currency countries--mainly Europe--which represent 25% of the kingdom's total imports.
Producers also point to a decline in the value of the US dollar which makes a dollar-denominated oil price rise less painful in nondollar
economies and devalues Opec's purchasing power.