As most people know, the general trend in the dollar’s role as an international currency has been slowly downward since 1976.
The latest on the dollar’s international currency status
Jeffrey Frankel, 6 December 2013
When did the dollar overtake sterling as the leading international currency? Evidence from the bond markets
Barry Eichengreen, Arnaud Mehl, Livia Chiţu, 23 May 2012
The global economic and financial crisis has lent new impetus to discussions of the future of the international monetary and financial system. Some advocate moving to a multipolar system in which the US dollar shares its international currency role with the euro, the Chinese renminbi and/or the IMF’s Special Drawing Rights.
The rise of the renminbi as international currency: Historical precedents
Jeffrey Frankel, 10 October 2011
All of a sudden, the renminbi is being touted as the next big international currency. Just in the last year or two, the Chinese currency has begun to internationalise along a number of dimensions. A renminbi bond market has grown rapidly in Hong Kong, and one in renminbi bank deposits. Some of China’s international trade is now invoiced in the currency.
The ‘strong dollar’ policy of the US: Alice-in-Wonderland semantics vs. economic reality
Willem Buiter, Ebrahim Rahbari, 28 June 2011
The strong-dollar policy is a US government policy based on the assumption that a strong exchange rate of the dollar is both in the US national interest and in the interest of the rest of the world. The policy was first enunciated by the then-Secretary of the Treasury Robert E Rubin, shortly after he succeeded Lloyd Bentsen as US Secretary of the Treasury on 11 January 1995.
The Dollar: Dominant no more?
Barry Eichengreen, 10 January 2011
If the euro’s crisis has a silver lining, it is that it has diverted attention away from risks to the dollar. It was not that long ago that confident observers were all predicting that the dollar was about to lose its “exorbitant privilege” as the leading international currency. First there was financial crisis, born and bred in the US.
The dollar question: Where are we?
Kati Suominen, 9 July 2010
The global crisis and US economic travails triggered a firestorm debate on the future of the global currency regime.
What is the status of the international roles of the dollar?
Linda Goldberg, 31 March 2010
By many measures, the dollar is the most prominent currency in the world. It plays a central role in international trade and finance as both a store of value and a medium of exchange.
The exorbitant privilege from a global perspective
Maurizio Michael Habib, 29 March 2010
The residents of the US pay relatively low interest on their liabilities to foreigners, while earning relatively high returns on their foreign assets. This positive “excess return” on net foreign assets – known as the “exorbitant privilege” of issuing an international currency – facilitates the sustainability of large negative external positions.
Memory and the dollar
Rebecca Hellerstein, William Ryan, 6 February 2010
Since the Second World War, the dollar has been the currency used most commonly in financial, trade, and cash transactions worldwide. Whether that will remain the case is the subject of an intensifying debate in global financial circles.
The new global balance – Part II: Higher rates rather than weaker dollar in 2010
Eduardo Levy Yeyati, Piero Ghezzi, Christian Broda , 16 October 2009
In the early months of the crisis at the end of 2008, the US dollar rose sharply as US interest rates fell sharply (IMF 2009).
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