The US dollar has been the currency of the world since time immemorial. From the day when the United States of America became an independent free nation. Trades all over the worlds are quoted in US dollars. Bank transactions, from ill gotten to money laundering were deposited in dollars. But as the world ages, the US dollar is having difficulty in sustaining its value against the currencies of other nations. In Asia alone, newly developed Asian countries like Singapore and Malaysia not to mention Japan and South Korea, the US dollar had depreciated to its lowest level against Singaporean and Malaysian currency. The two Asian neighbors were just as strong even if the US dollar suffers from speculators because both economies are vibrant.
On the other hand China for example, keeps their Yuan low against the US dollar because they wanted their exports more competitive than any other exporting countries. The Bush administration has repeatedly called on the Chinese to let their currency appreciate so as to level the playing field. But the Chinese are sly and managed to control their currency as much as they want. Their economy is now the world’s largest, overtaking that of the US and Japan. Their currency, the Yuan remained low against the US dollar and they’re happy about the trend and they have no plans whatsoever to change the existing exchange rate.
In contrast, The Philippines is happy whenever the peso appreciates against the dollar. The government feel resoundingly boisterous and always telling the people that the country’s economy is doing well. But in reality, though the local currency is now rated high against the dollar, the prices of all commodities have risen in recent months and showing no sign of abating. I don’t know why the economic managers of the Philippines always depend on the exchange rate of the peso. According to them, peso appreciation is a sign of good and vibrant economy. What a lie! Revolting indeed.