Explaining What is a Global Reserve Currency and Its Importance
A global reserve currency is a currency that is widely accepted and held in significant quantities by governments, central banks, and other financial institutions around the world. The US dollar is currently the dominant global reserve currency, accounting for approximately 60% of central bank foreign exchange reserves worldwide. This confers benefits and advantages on the United States, but also creates challenges and risks for the global economy. There have been calls for the international monetary system to become more multipolar and diversified, with a greater role for other currencies, but any shift is likely to be gradual and incremental.
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• Explaining What is a Global Reserve C...
