The U.S. dollar as world currency

Financial Strategies

There is a lot of news about the U.S. dollar (USD) and how sustainable it is as the world currency in the future. While I don’t expect a major shift away from the dollar during my lifetime, we do see currencies and their use gradually changing over time.

• Currently the USD represents 58 percent of the world’s central bank reserves. is is down from 75 percent in 2000. is reserve currency is a magnet for foreign investment in the United States, according to William Greiner, CFA .

• Some of the reasons for the renewed interest in world currencies is due to Russia, China and India talking with Brazil and South America about creating a new currency to challenge the USD. ey want to trade directly with each other in their own currencies.

Let’s take a look at the current facts, according to JP Morgan.

• China’s currency the Renminbi (RMB) was the fth most traded cur-