the-role-of-the-dollar-called-into-question

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. There also appears to be some international support for governor Zhou's idea, although the US is understandably less enthusiastic. So will we see the US dollar lose its international pre-eminence anytime soon

Why the dollar...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222