"SEPTEMBER 30, 2011
BY SEAN HYMAN, Forex Strategist, Money Morning
Believe it or not, there was a time when investors saw the euro as the savior currency of the world.
People talked about how the euro would replace the dollar as the world's reserve currency - and there was plenty of proof to support that opinion.
At the time, t he European Central Bank (ECB) had the right monetary solutions in place to fight inflation, while the U.S. Federal Reserve was struggling to keep inflation under control . That was another point for the euro, and a strike for the dollar.
So not surprisingly, central banks started replacing some of their U.S. dollar reserves with euros, and the euro became a second "reserve currency" for central banks."
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