Apr 19, 2023
Recently, there has been a rumor circulating that the US dollar is losing its status as the reserve currency. In this week’s episode of Grow Money Business, we discuss the security of the US dollar remaining the world’s reserve currency, the background of the concerns, the macroeconomics of the situation, and more.
[04.18] World’s reserve currency – Grant starts the conversation by explaining the economic benefit of residing in a country that has the world’s reserve currency.
[06.25] US dollar in the world – We discuss some of the reasons why the world deals in US dollars.
[12.39] Central banks – Grant explains why other countries’ central banks are borrowing US dollars.
[18.10] Holding the US dollar – We discuss the reasons other countries hold the US dollar.
[26.23] Losing reserve currency status – We discuss what will happen if US dollars lose their status as the world’s reserve currency.
Resources
The U.S. Dollar as the World’s Dominant Reserve Currency – crsreports.congress.gov/product/pdf/if/if11707
US Dollar Share of Global Foreign Exchange Reserves Drops to 25-Year Low – imf.org/en/Blogs/Articles/2021/05/05/blog-us-dollar-share-of-global-foreign-exchange-reserves-drops-to-25-year-low
Foreign Exchange Reserves: What They Are, Why Countries Hold Them – investopedia.com/terms/f/foreign-exchange-reserves.asp