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For one the USD is only the largest reserve currency used internationally: GBP, EUR and JPY are also used as reserve currencies. For another the US has been try
by spiralx 6y ago
For one the USD is only the largest reserve currency used internationally: GBP, EUR and JPY are also used as reserve currencies. For another the US has been trying to reduce the role of the dollar as a reserve currency because it actually has significant downsides and fewer benefits than is popularly portrayed - this even has it's own term, "exorbitant privilege". Here's Ben Bernanke talking about it:
https://www.brookings.edu/blog/ben-bernanke/2016/01/07/the-dollars-international-role-an-exorbitant-privilege-2/ https://www.brookings.edu/blog/ben-bernanke/2016/01/07/the-d...
TL;DR: the USD's reserve currency status is very much exaggerated.
- redblacktree 6y agoThank you, that was interesting reading. Not sure why you were downvoted.
- spiralx 6y agoNo problem, this is another article on the subject I'd bookmarked: https://www.ussc.edu.au/analysis/the-reserve-currency-myth-the-us-dollars-current-and-future-role-in-the-world-economy https://www.ussc.edu.au/analysis/the-reserve-currency-myth-t...