Loading ...Reserve Currency Status Does Not Last Forever
I think the endgame for USD as the world’s reserve currency will begin when USD tops.
I don’t know how many years the endgame will take.
A Second Geo-Strategic Shoe (Other Than Ukraine) Is Dropping
Good luck to you and yours.
These 3 graphics are Excellent representations of reality
Better than any 1000 word essay or analysis
Thank JL
Good post JL. As your graphic shows there is usually a bit of overlap because the change is a process not a single point in time as you suggest. I would suggest the USD is already loosing influence (BRICS transactions an early indication of that) but it isn’t likely to be a flip of the switch but a gradual decline that picks up velocity over the months and years ahead.
Much appreciated, JL.
Keep in mind that Pound Sterling is still a reserve currency 78 years after the Second World War ended. Its share of the global reserve basket was a meaningful 5% in 2022. So I agree with others that USD will not end its run instantly or as some overnight event but rather will gradually diminish in importance as alternatives appear. It can take many years to unwind positions in the dollar that represent investments inside the US itself.