The US Dollar as the Global Reserve Currency: Implications for US Hegemony

2017 ◽  
Vol 8 (1) ◽  
pp. 104 ◽  
Author(s):  
Thomas Costigan ◽  
Drew Cottle ◽  
Angela Keys
2017 ◽  
Vol 08 (02) ◽  
pp. 1750011
Author(s):  
Satyendra Kumar Gupta ◽  
Ashima Goyal

We analyze prospects for the Chinese renminbi to become a major international currency, along with the US dollar, in a multiple reserve currency world. Analytical models on switching costs in networks and on currency choice under direct and indirect transaction costs are used to derive variables for empirical analysis. While network size and financial market depth (lower transaction costs) favor incumbents, changes in trade-related bargaining power and in currency volatility could favor newcomers. The models also point to political determinants affecting currency choice. We develop indices to quantify some of these. When the bargaining power index is used in estimation, it shows capital account openness and currency stability have to complement a rise in trade share for an aspiring reserve currency.


2017 ◽  
Vol 09 (03) ◽  
pp. 76-84
Author(s):  
Jing WAN

After the 2008 financial crisis, the International Monetary Fund realises that reforms are needed to reduce the reliance on the US dollar as the only international reserve currency. It began to nurture super-sovereign reserve money where SDR (Special Drawing Rights) is the most favourable candidate. Joining SDR will push forward China’s exchange rate reform to meet the standard of a real international reserve currency, which requires more skilful domestic and international policy coordination.


2015 ◽  
Vol 10 (3) ◽  
pp. 71-80
Author(s):  
Ramona Orăștean

Abstract The paper analyses the official use of international currencies as reserve currency (store of value) and anchor currency (unit of account). Examining the role as a reserve currency we note that the US dollar is the main reserve currency even if it recorded a decline given the decrease of the value of the US dollar reserve holdings and the gradual diversification of the currencies used. Since 2010, the euro's share decreased continuously may be due to the Eurozone crisis and the euro's depreciation against the US dollar. Then we show that the US dollar dominates as an anchor currency, though it was temporary abandoned during crisis time, having more than a regional dimension. At the same time, the use of the euro in exchange rate arrangements appears mainly in the regions that have close links with the euro area. Over the last few years, we have witnessed a gentle orientation towards a multimonetary world, especially regarding the use of the international currencies as reserve currency given the diversification of the currencies in which central banks understand to hold international reserves and the increasing share of the nontraditional currencies in total foreign exchange reserves.


Auditor ◽  
2021 ◽  
pp. 43-48
Author(s):  
A. Soltakhanov ◽  
D. Sizova ◽  
T. Sizova

The article presents the main directions of the plan for the de-dollarization of the Russian economy, identifies strategic partners in its implementation. A comparative analysis of the centralized and decentralized payment system is carried out. The advantages and disadvantages of the decentralization of the monetary system are emphasized, the trends of its development in Russia are determined. The perspectives of decentralization of the monetary system as a way of abandoning the reserve currency - the US dollar - are analyzed. Proposals are formulated for the further development of the decentralization of the monetary system in Russia.


Author(s):  
A. Polivach

This article reviews usage of Russian and Chinese currencies in the economies of the five Central Asia countries (CA5) – for trade payments, intergovernmental and commercial loans and also in the official foreign exchange reserves. Information on these matters, unfortunately, is non-regular and very fragmented. However, based on the analysis of available data the author makes the following conclusions. Both the Renminbi and the Rouble are used in the CA5 economies in small scale, while the US Dollar absolutely dominates. Currently the Rouble is more popular than the Renminbi. It is especially visible in those countries, which are the members of the Eurasian Economic Union. Most likely relationship between the US Dollar, the Rouble and the Renminbi in the CA5 economies will not significantly change in the near future. However the usage of the Renminbi may substantially increase, if China removes all restrictions for trans-border capital movements. Also the usage of the Rouble may significantly increase, if Russia takes actions transforming its currency into a regional reserve currency.


Author(s):  
Timothy Doyle ◽  
Dennis Rumley

In the twenty-first century, the Indo-Pacific region has become the new centre of the world. The concept of the ‘Indo-Pacific’’, though still under construction, is a potentially pivotal site, where various institutions and intellectuals of statecraft are seeking common ground on which to anchor new regional coalitions, alliances, and allies to better serve their respective national agendas. This book explores the Indo-Pacific as an ambiguous and hotly contested regional security construction. It critically examines the major drivers behind the revival of classical geopolitical concepts and their deployment through different national lenses. The book also analyses the presence of India and the US in the Indo-Pacific, and the manner in which China has reacted to their positions in the Indo-Pacific to date. It suggests that national constructions of the Indo-Pacific region are more informed by domestic political realities, anti-Chinese bigotries, distinctive properties of twenty-first century US hegemony, and narrow nation-statist sentiments rather than genuine pan-regional aspirations. The book argues that the spouting of contested depictions of the Indo-Pacific region depend on the fixed geostrategic lenses of nation-states, but what is also important is the re-emergence of older ideas—a classical conceptual revival—based on early to mid-twentieth century geopolitical ideas in many of these countries. The book deliberately raises the issue of the sea and constructions of ‘nature’, as these symbols are indispensable parts of many of these Indo-Pacific regional narratives.


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