US dollar to remain world's reserve currency, Fed's Waller says
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Federal Reserve Governor Christopher Waller outlined the case for the world continuing to use the U.S. dollar as the primary reserve currency for international trade in remarks on Thursday.
«Recent commentary warning of a possible decline in the status of the U.S. dollar raises concerns about the effects of sanctions against Russia, U.S. political dysfunction, the rise of digital assets, and China’s efforts to bolster usage of the renminbi,» Waller said at a conference sponsored by the Global Interdependence Center and the University of the Bahamas in Nassau.
Waller went on to say that none of those concerns has resulted in a notable decline in the dollar's 'outsized' role in the global economy – adding that trends like the increased use of digital assets such as stablecoins, which are overwhelmingly tied to the dollar, tend to increase the U.S. dollar's international profile even further.
«At almost 60 percent of global reserves in 2022, the U.S. dollar is by far the dominant reserve currency. The next leading competitor to the dollar is the euro, with a share of roughly 20 percent,» Waller noted in his remarks.
COULD THE US DOLLAR LOSE ITS RESERVE CURRENCY STATUS TO CHINA?
The US dollar is the world's primary reserve currency, accounting for about 60% of all foreign currency reserves in 2022. (Photographer: Andrew Harrer/Bloomberg via Getty Images / Getty Images)
«Although some have pointed to a decreasing share of reserves held in dollars, the dollar share – though down somewhat from the mid-2000s – is actually little changed from the mid-1990s. And while there has been an increase in the share held in renminbi, that
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