Russia » Economics
Author`s name Ольга Савка

Dollar and Euro Game in Full Swing

The dollar will inevitably grow against the euro

World-known financier George Soros has recently caused a commotion on the world financial market. Last week Soros announced that he was going to convert his currency assets in euro. Soros was "offended" with the American economic policy because of the dollar reduction against other leading currencies. Newspapers have published a great deal of articles and reports, in which it was said that Soros had speculated for the dollar decline. In addition to that, the dollar has recently reached the all-time low against the euro - $1,18 per one euro.

As a matter of fact, it is not the first time, when George Soros resorts to such measures. Ten years ago the financier made a similar announcement about the British pound. He started selling pounds sterling, although some people started buying them on exchanges all over the world, after the rate reached the lowest point. The British pound improved a bit later, and it turned out that those strange buyers were Soros's people. As a result, the financier managed to obtain a huge sum of pounds sterling that had been purchased at very cheap prices.

This brings up a question: why do market players make one and the same mistake twice? The answer to this question is simple: real players do not make any mistakes. Dilettantes play an important role on the Western financial market, they try to be fixed up to Soros in their activities. Their influence never lasts long, and they all basically lose in the end, giving away all their money to George Soros and the like.

As a matter of fact, the financier announced that the dollar rate had reached the lowest point. One may say that Soros will become a true ally of the US dollar a little bit later. There are no reasons left anymore to keep the American dollar at such a low position. The Iraqi crude is about to be used, the UN Security Council has passed the resolution to lift sanctions from Iraq, and Brazil, Argentina, Venezuela and several African countries are not going to give up their plans to increase the crude output either. All these facts allow to assume that crude prices will fall in the nearest future. In addition to that, American leading exchanges have been showing a growing trend lately. On the other hand, the GDP of European countries is going down, the high euro reduces the export and the consuming demand. That is why, the dollar will inevitably grow against the euro in six or 12 months.

Russia should think of something else against the background of the struggle between the American and the European currencies. For example, the Russian economy and low prices on oil is a very serious issue.

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