• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 1 min Alberta govt to construct another WCS processing refinery
  • 14 mins What Can Bring Oil Down to $20?
  • 3 hours Let's Just Block the Sun, Shall We?
  • 12 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 14 hours OPEC Cuts Deep to Save Cartel
  • 6 hours Venezuela continues to sink in misery
  • 17 hours Regular Gas dropped to $2.21 per gallon today
  • 17 hours $867 billion farm bill passed
  • 2 days Sane Take on the Russia-Ukraine Case
  • 2 days Waste-to-Energy Chugging Along
  • 2 days Sleeping Hydrocarbon Giant
  • 16 hours Global Economy-Bad Days Are coming
  • 21 hours WTO So Set Up Panels To Rule On U.S. Tariff Disputes
Alt Text

The Best Places In The World To Mine Bitcoin

As Chinese bitcoin miners face…

Alt Text

How To Spot Top E&P Stocks In 2018

As sentiment in oil markets…

David Beckworth

David Beckworth

David writes the Blog: Macro Market Musings

More Info

Trending Discussions

Is the Dollar’s Reserve Currency Status Being Threatened?

Randall W. Forsyth points to two recent developments as part of a broader change in the global monetary system:

The new world monetary order continued to evolve with two separate developments Tuesday.  Japan said it would join China in buying debt securities to support beleaguered European sovereign creditors. In so doing, the world's No. 2 and No. 3 economies were acting to try to hold together the euro as a viable alternative to the world's reserve currency, the dollar, from the No. 1 economy, the U.S.  At the same time, China permitted trading of the renminbi in the U.S. for the first time -- a significant step in the RMB becoming a full-fledged international, convertible currency...[These two developments] are both part of the loosening of the global monetary system away from its dollar-centric mooring.

Maybe so, but there there are many hurdles for alternative currencies to clear before there arises any meaningful threat to the dollar's reserve status.  Just look at the dominance of the dollar in the global forex market over the past three years.  Even when this change in the globlal monetary system does come about, Barry Eichengreen believes the dollar will still be a dominant currency in the global economy. For better or for worse, then, the Federal Reserve will continue to be a monetary superpower for some time.

By David Beckworth

Source: Macro Market Musings




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News