Forex is a way to understand better the underground of the financial markets. As money has always been symbols of supremacy and sovereignty, it is possible to say relations between currencies are showing the state of international relations.
The rivalry between the United States and China are showing that currencies have a major role. The recent competition between the dollar and the yuan is the first real rivalry for the Uncle Sam currency since the end of the Second World war. The new technological rivalries around the currencies, for instance the creation of the crypto yuan is a way to deal with this issue. These factors show that the dollar is linked to the economic power of the United States, which is relatively decreasing towards China and other Asian countries.
This link was already seen in History. For instance the pound was the reference currency during the XIXth century. However the economic rise of the United States created an intermediate phase when the economy was dominated the United States and the finance by Great Britain. This situation is to a good extend similar to the situation today between the Western countries and the Asian countries: as the Western countries are still dominating financially, and the combined strength of the dollar and the euro are unparallelled today, the economic rise of Asia is able to change this supremacy in the middle-long run. To this extend a great asset of the United States for instance will be its soft power.
The rivalries between currencies are also linked to politics. Recently the American government decided to support the yen which is decreasing. The new balance of international relations which is today advantaging China compared to Japan compels the United States to support an ally in the region. The current evolutions of the links between money can between other factors be understood by the evolution of international relations. It is the reason why this field is necessary to follow to understand better the evolution of the relations between moneys.
This link can also be seen in crypto currency. This new kind of money can be a great opportunity in social and solidarity economy. Alternative capitalism can use this kind of money to improve. It is the reason why alternative capitalism can also benefit overall from the link between forex and international relations.
