Reserve Currencies in an Evolving International Monetary System /

Despite major structural shifts in the international monetary system over the past six decades, the US dollar remains the dominant international reserve currency. Using a newly compiled database of individual economies' reserve holdings by currency, this departmental paper finds that financial...

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Bibliographic Details
Main Author: Iancu, Alina
Other Authors: Anderson, Gareth, Ando, Sakai, Boswell, Ethan
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2020.
Series:Departmental Papers; Departmental Paper ; No. 2020/002
Online Access:Full text available on IMF
Description
Summary:Despite major structural shifts in the international monetary system over the past six decades, the US dollar remains the dominant international reserve currency. Using a newly compiled database of individual economies' reserve holdings by currency, this departmental paper finds that financial links have been an increasingly important driver of reserve currency configurations since the global financial crisis, particularly for emerging market and developing economies. The paper also finds a rise in inertial effects, implying that the US dollar dominance is likely to endure. But historical precedents of sudden changes suggest that new developments, such as the emergence of digital currencies and new payments ecosystems, could accelerate the transition to a new landscape of reserve currencies.
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Physical Description:1 online resource (67 pages)
Format:Mode of access: Internet
ISSN:2616-5333
Access:Electronic access restricted to authorized BRAC University faculty, staff and students