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Which is why the US has been trying to discourage the use of the dollar as a reserve currency for well over a decade now. There are no real upsides to being a r
by spiralx 5y ago
Which is why the US has been trying to discourage the use of the dollar as a reserve currency for well over a decade now. There are no real upsides to being a reserve currency (i.e. the strength of the dollar is because of the size and strength of the US economy, not because it is a reserve currency), and a big downside: financial problems around the world lead to the buying of dollars, causing the price to go up which makes imports more expensive and costs for American businesses and consumers to go up.
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...