Bìznes Inform (Feb 2020)
The Status and Prospects of the Global Financial Market
Abstract
The article is aimed at researching the current status and prospects for further development of the global financial market in the context of the growing struggle of world leaders in the financial, economic and political arena for dominance in key spheres. The relevance of this research topic is determined by the increasing pace of global development, the changing status of the financial market and the propensity of the world’s economies to fluctuate between strengthening and development to falling and crisis. Forecasting and diagnosing these processes is made possible by a long and fundamental study of world trends, moods, and defining events. The creation of international groups of influence, the ambitions of world leaders, political games in order to establish hegemony, economic instability lead to a mixed situation in the world. The condition of world currencies such as the US dollar, the Euro and the Yuan, with a deep and comprehensive analysis, will help to predict the future direction of the world’s countries development. The article substantiates the large role of international gold and currency reserves in analyzing the stability of the economies of countries. The reasons for the desire of the major countries of the world to have the status of a country – the issuer of the reserve currency have been defined. The reasons for the leading position of the US dollar as a world reserve currency and the beginning of the tendency of reducing the influence of the US dollar on some countries of the world as a result of increasing the level of tension in the relations of competing advanced economies have been analyzed. The factors determining the role and position of the Euro as the world’s leading currency and the reasons for the increased demand in developing countries of the US dollar and the Euro as reserve currencies have been researched. The aspects of the Chinese government’s monetary policy in interactions with major trading partners, the prospects for the development of the Chinese Yuan and the peculiarities of China’s political and financial course have been researched.
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