Dollar Dominance And The Rise Of Non-traditional Reserve Currencies
The US dollar has long played an outsized role in global markets, but central banks aren’t holding the greenback in their reserves to the extent that they once did. Read More Here
Tag: Dollar
The Dollar’s Reserves Of Strength
The US-China trade war and the recent freezing of much of Russia’s official foreign-exchange reserves have again raised fears of an exodus from the dollar. But no one should write the greenback’s obituary just yet. Read More Here
The Rethinking Of The International Monetary System
Fifty years ago, the world changed. On August 15, 1971, US President Richard Nixon slammed shut the “gold window,” suspending dollar convertibility. Although it was not Nixon’s intention, this act effectively marked the end of the Bretton Woods system of fixed exchange rates. But, in truth, with the rise of private cross-border capital flows, a system […]
Will Central Bank Digital Currencies Doom Dollar Dominance?
Some say that issuance of central bank digital currencies will transform the international monetary status quo by eroding the US dollar’s dominance of cross-border payments and greatly reducing transaction costs. But this is not going to happen. Read More Here
A Digital Nixon Shock?
US President Richard Nixon’s 1971 decision to end the US dollar’s convertibility into gold had such far-reaching consequences that it took policymakers decades to learn to manage the new system. Now, digital technologies are driving a new monetary revolution that could end the greenback’s global primacy altogether. Read More Here
Why The US Dollar Will Remain On The Comeback Trail For Many Months
While the dollar outlook has been cloudy in the recent years, it is fighting back, thanks to tougher interest-rate tightening expected from the Fed and a brighter political climate under US President Joe Biden. Read More Here
How An Overheated U.S. Economy Could Create Chaos
This year’s recently released U.S. Treasury Foreign Exchange Report reads like Hamlet would read if we excluded the Prince of Denmark. In seeking the sources for world external imbalances and for global currency misalignments, the Treasury looks everywhere other than where the main source of these imbalances now resides. Read Here | The National Interest
Coming Soon: The Demise Of The U.S. Dollar?
There are many reasons to worry about the U.S. dollar’s underlying economic fundamentals. However, before despairing that America is well on the way to a dollar crisis a person might want to ask two questions. First, does the dollar have any serious rival to displace it as the world’s international reserve currency? Second, would the […]
The Year Of The Renminbi?
After years of poor policy and political tumult in the United States, it is not unreasonable to ask whether China’s currency will soon be in a position to challenge the greenback. While neither country has been doing itself any favours in the currency pageant, it is worth remembering that history is not on America’s side. […]
The Calm Before The Exchange-Rate Storm?
Core dollar exchange rates have so far been surprisingly stable during the pandemic, most likely because major central banks’ policy interest rates are effectively frozen at or near zero. But although the current stasis could last awhile, it will not last forever. Read Here | Project Syndicate
looking beyond borders 