What Would It Take for the USD to Lose its Reserve Status?
A deep dive into what led the US dollar to become the global reserve currency, and what it'd take for that to change.
IN THIS PUBLICATION:
- The US dollar status as a reserve currency is not permanent.
- That said, it takes a lot to make countries consider ditching the global reserve currency because the transition process is incredibly inconvenient and uncertain.
- Unseating a global reserve currency is the sort of process that happens over decades, not years, and usually has more to do with the decline of the dominant power (US) than the rise of a challenger (China).