Definition of Reserve Currency
A reserve currency, or anchor currency, is a currency that is held in significant quantities by many governments and institutions as part of their foreign exchange reserves. This permits the issuing country to purchase the commodities at a marginally lower rate than other nations, which must exchange their currencies with each purchase and pay a transaction cost. For major currencies, this transaction cost is negligible with respect to the price of the commodity. According to some economists such as Valéry Giscard d'Estaing a former French Minister of Finance, a reserve currency gets certain benefits called Exorbitant privilege.
* >  For example, the United States dollar being the reserve currency, the world's need for dollars allows the United States to borrow at lower cost. However, such a high demand increases the value of the dollar which hurts exports from the United States.
In 2010, United Nations Conference on Trade and Development
(was established in 1964 to provide a forum where the developing countries could discuss the problems relating to their economic development. )
called for abandoning u.s. dollar as the SINGLE MAJOR RESERVE CURRENCY.
RUSSIA, CHINA, and GULF COOPERATION COUNCIL have expressed a desire to see an independent new currency replace the dollar.
by taking a look at the pace of our economy and compare it to China or India or Middle Eastern oil countries, by 2018 there will be a major changes replacing our american dollars with precious metals such as GOLD AND SILVER.
Long Beach Gold and Silver Jewelry
2338 E. Anaheim St. 101 B
(Corner of Anaheim St. + Junipero)
Long Beach Ca 90804
562-433-7600 310- 343-3804