Currencies

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China started to buy major amounts of European currencies for its currency reserves around 2001 (and I think Japan did too).

That the denomination of oil in EURO will come sooner or later is imho unavoidable. The question is only will it be denominated in Euro alone, or will there, which I think is likelier, a double denomination in EURO and USDollar.

Two points that mainly will determine the EURUSD exchange rate in the near future.

1. How much USD were already shifted into EURO by countries with major foreign currency reserves (No doubt, they started already years ahead) and how much demand from USD for EURO is therefor left.

2. How much EURO will the ECB "print" to provide supply for the increased demand.