#47 Inflation: The Seven Sisters ( III ) or Tales about Reserve Currencies

One of the mechanisms that fuels imported inflation has to do with foreign exchange parities (read further here). The US$ has been over the last few decades the currency of reference for the payment of commodities, especially oil. Over the last decades since the creation of the Bretton Woods system, the name of the game for the greatest majority of countries in the world has been to maintain a sufficient and proper level of currency reserves, which are usually mostly US$.