The Pegged Dollar

  To ensure economic stability, countries in South America, Asia, and and the Middle East peg their currency to the US dollar. As the dollar sinks to new lows, many countries are reconsidering their economic allegiance because it devalues and restricts their own currency, often resulting in inflation. Russia, Saudi Arabia and Venezuela have already taken steps to revalue their currencies. If enough governments decide to cut ties with the dollar, consequences could be serious: our currency would freefall.