FAQs
Q1.
Is the Dollar not the World Currency?
Answer:
The U.S. dollar is used as a currency well beyond the United States, to the extent that some Americans "want their currency back".
The Wocu provides a suggested holding for the dollar, currently circa 30%. This ratio could be used to position the dollar as the currency of one
of the world‘s most successful economies, but not as the world‘s currency.
Q2.
Is Gold not the best store of Value?
Answer:
The WDX Organisation does not include gold in its basket. Gold may be priced in Wocu and this allows the markets to see the price of gold
marked to a less volatile yardstick. The Wocu may be a valuable contribution to the pricing of gold, a volatile instrument in a class of
its own. Opinions will always differ as to whether gold is the best way of storing value.
Q3.
Should the markets not decide?
Answer:
The markets will continue to decide the price of individual currencies. Because the Wocu is derived from a globally balanced basket of
these individual currencies it will still be determined by the markets but will have reduced volatility characteristics and consequently, less risk.
Q4.
Should Governments not decide?
Answer:
Governments are stewards of their national currencies so they do, of course, decide upon national economic issues. However, since the
Bretton Woods Agreement stalled, markets have decided the value of the major floating currencies. The Wocu will not alter this but
will offer lower volatility and less risk.
Q5.
How does this relate to the SDR?
Answer:
The SDR was introduced over forty years ago, by the IMF, to assist in reserve matters for specific nations. However, it is only re-weighted
every five years and is only based on four currencies. The Wocu is far more advanced and is totally apolitical.
Q6.
Has anyone else had such an idea?
Answer:
Yes, Lord Keynes in 1944. Keynes wished to prevent the U.S. experiencing the burden of the Reserve Currency Role that had been felt by the
United Kingdom and the associated 'Sterling Area'. Because of the pressure of Global Conflict this was not pursued and, in any case, the U.S.
leadership at the time thought U.S. dollar hegemony was appropriate. The dollar was priced against gold.
Q7.
Can I see the value of the Wocu?
Answer:
Register and complete the application. Once this is approved you will be able to access the member’s area to view live and
historical values and access other information.
Q8. What is the Wocu?
Answer:
The Wocu is a derivative of the exchange rates of the World's top twenty countries as measured by
GDP. WDX has weighted its algorithm in line with those GDPs and the result is a proven, less volatile world
currency unit.
Q9. Why do we need the Wocu?
Answer:
Since the Bretton Woods Agreement broke down the world foreign exchange mechanism has suffered much volatility and is not best suited
to the multi-polar world that is now emerging. Currently there is much high-level discussion about this. The future picture of the world, where
China and India may well overhaul the USA in output terms, requires the Wocu, a vital component of a New Financial Architecture.
