Sunday, March 8, 2009

What Happened to the Debate over the Dollar's Reserve Currency Status?

The New York Times has an article today on the rise of the U.S. dollar during the current economic crisis. The article is interesting throughout, but I found this excerpt particularly poignant:
As the dominant flavor of money used in business worldwide, the dollar has once again been affirmed as the global reserve currency.

Only last year, some analysts said that as the American economy sagged, foreign central banks would be reluctant to sink national savings into the dollar. That has been soundly debunked.
Yes, the debate on whether the dollar would maintain its status as the main reserve currency (see here, here, and here) seems so dated now as does this picture:

As noted on this blog, the real debate now is whether the Euro can survive this economic crisis.

1 comment:

  1. The long term global reserve currency will be a Single Global Currency, managed by a Global Central Bank within a Global Monetary Union. It will eliminate currency fluctuations and crises, and the need for int'l reserves, and save $400 billion annually in foreign exchange transaction costs.
    The success of the euro shows that monetary union is the best way to ensure monetary stability. If 16 countries can use the same currency, why not 192? The world should begin researching and planning now for a Single Global Currency, which will save the world- literally: trillions.
    The Single Global Currency Assn. promotes the implementation of a Single Global Currency by 2024, the 80th anniversary of the 1944 conference.
    That's only 15 years away. The Assn's website is See, also, the book, "The Single Global Currency - Common Cents for the World."
    Morrison Bonpasse
    Single Global Currency Assn.
    Newcastle, Maine, USA