In addition, both Singapore and Hong Kong manage their exchange rates against the American dollar.
He has dropped his past opposition to Ecuador's use of the American dollar as its currency.
The outlook for next year depends critically on what happens to the American dollar.
Ironically, this was the logic behind Argentina's currency board, anchored to the American dollar rather than to gold.
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Most Asian countries pegged their currencies in some way to the American dollar.
Indonesia's rupiah was worst hit, as investors sought safety in the American dollar.
So even if the American dollar were to slide against the euro or the yen, some Asian currencies might follow it down.
With the Euro still dominating the American dollar, try looking in your own backyard for European flair with a considerably smaller price tag.
The model is Hong Kong, which introduced a currency board, tying its dollar tightly to the American dollar, amid a panic in 1983.
In the week beginning on December 15th, the Indonesian rupiah, Philippine peso, Thai baht and Malaysian ringgit all touched historic lows against the American dollar.
Part of the turmoil can be explained by events outside the region, notably a rout in rich-world stockmarkets, as well as a slide in the American dollar.
After all, the countries worst affected have seen the value of their currencies fall by between 35% and 70% against the American dollar since July last year.
"When all else fails, the American dollar won't, " he advises.
Local interest rates would then rise to punitive levels, banks would come under intolerable strain, and the link between the American dollar and Hong Kong's dollar would be in jeopardy.
And the price was pegged to the American dollar.
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Indeed, the territory's financial secretary, Antony Leung, gave warning that the Hong Kong dollar's longstanding peg to the American dollar might come under strain if the SARS outbreak is not resolved soon.
The latest conventional wisdom is to argue that the country was badly mistaken to cling for so long to the currency board, which pegged the peso at parity with the American dollar.
Because of the loss of wealth that is itself due to a falling currency, the American dollar-holder can't import as readily as in the past simply because the dollar doesn't buy as much.
The vast banking floor was empty when I arrived to open my bid to make a small fortune in the currency that is bound to appreciate against the American dollar over time.
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Though the price of gold has crept up of late, the value of the rand has risen too, making South African exporters less competitive: since the beginning of 2003, the South African currency has risen by about 30% against the American dollar.
As Gaffney notes, however, even at the high-end this necessary recapitalization of the Nation's defense capability will represent a mere four percent of the gross domestic product - - four cents on the American national dollar for national security.
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That means that, even with China allowing only a modest nominal appreciation of the yuan against the dollar, American firms are looking a lot more competitive than they were a few years ago.
The loonie (as it is known) has dropped against the muscle-bound American dollar by nearly 9% in the past year, slipping by 2.5% in the past month alone.
Coupled with the extraordinary looseness of American policy, the weak dollar has also revived fears of a currency crash.
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Recessions in the third world and sluggish growth in Europe have kept the dollar up and American import prices down.
The spurt in productivity growth in America has pushed up share prices in anticipation of future productivity gains, and also improved the competitiveness of American goods, thus increasing the dollar's long-term equilibrium level.
Even the appreciation of the loonie, as Canadians call their dollar, against the American greenback has not knocked the economy from its stride.
On Friday November 14th currency markets ground to a halt after the Zimbabwe dollar tumbled from 14 to one American dollar to 26-to-one.
Intrepid Soutter got an idea: why not lower the bar a bit on the oak barrels and aging time and bring a palatable product to the American market for a dollar or two less?
Meanwhile, questions on inflation, the weakness of the U.S. dollar and the reliability of American debt are also swirling.
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