The role of the dollar called into question

Following suggestions by China's central bank governor for a new world reserve currency, S&P takes a look at why the dollar is so dominant in the first place and what are the potential alternatives.

People's Bank of China governor Zhou Xiaochuan recently sparked a new round of debate regarding the international monetary regime with his call for a new international reserve currency. While the dollar was not specifically mentioned, it is clear that the proposed new international currency is meant to replace the role that the US currency currently plays. When a senior official of a government that holds about 10% of the US government's marketable debt makes such a statement, people take notice....

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