Thoughts From DJ: "Currency Pegging" 10-22-2023
DJ: DID YOU KNOW?
Looking at the GCR, or potential of, one has to analyze how that would actually look. How will it be possible to affect all currencies at one time? There are 163 official currencies around the world. Of these 163, however, 47 currencies are tied to another with a fixed exchange rate this is called “pegging a currency”.
The term pegging refers to the practice of attaching or tying a currency’s exchange rate to another country’s currency. Pegs are put in place to provide stability to a nation’s currency by linking it to an already stable currency. More than 65 countries peg their currencies to the U.S. dollar while five U.S. territories and eleven foreign nations use it as their official currency of exchange.
Along with the USD other stable currencies are used for pegging.The Russian ruble, British Pound Sterling, Indian rupee, Euro, New Zealand dollar, South African rand, the Australian dollar are among the top stable currencies used for pegging.
In addition to “pegged” currencies there are sectors throughout the globe that have “unified currency”. Unified currency (currency unions) is an agreement among members of that union (countries or other jurisdictions) to share common currency, and a single monetary and foreign exchange policy. There are about 10 other unified currencies as well as almost all of the pegged currencies double as a unified currency (currency union).
So when it comes down to the logistics of implementing a GCR, (asset backing currencies primarily with precious metals ) only a couple of handful of currencies will actually have to be affected. The values applied will filter down and populate through the other 163 currencies. At which time it’s feasible to see a merging of current unified currencies to even further simplify the process.
While there are other variables that are needed to implement the GCR, attaching values is not as enormous of a feat as one would imagine. It stands to reason that the other variables needed have also been simplified in some manner. I am certain, within time, we will witness what those activities are that have been developed behind the scenes. DJ