The U.S. dollar as world currency

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

Financial Strategies

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 currency in the world last year.

LINDA SHAPLEY Publisher lshapley@coloradocommunitymedia.com

MICHAEL DE YOANNA Editor-in-Chief michael@coloradocommunitymedia.com

• e U.S. share of global trade is about twelve percent, and the U.S. share of global GDP is about 25 percent. Yet the dollar’s share of foreign exchange, trade, debt, and exchange reserve is much higher, which is why the dollar is known as the world’s reserve currency.

• About 35 percent of all Treasury bonds are owned by foreign investors.

• e dollar’s role in foreign exchange markets has been mostly unchanged over the last 20 years or more. In 2022, the dollar accounted for about 89 percent of all foreign exchange transactions. e dollar’s dominance in international nance

STEVE SMITH Sports Editor ssmith@coloradocommunitymedia.com

LINDSAY NICOLETTI Operations/ Circulation Manager lnicoletti@coloradocommunitymedia.com is clear with the dollar used in about half of all trade invoicing—much higher than the twelve percent share in global trade.

• e dollar is still the dominant currency of choice for investment of foreign exchange reserves at about 60 percent.

• Some central banks are diversifying holdings away from the dollar and the euro, but only 25 percent of the shift is explained by increased allocations to the Chinese RMB. Much of this was driven by Russia which holds one third of all RMB reserves.

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Email letters to staylor@coloradocommunitymedia.com would work by tamping down the effect of rising residential and commercial property values on the tax burden for homeowners and businesses.

Deadline Wed. for the following week’s paper.

Here’s how it would work for residential property:

• The residential assessment rate would be reduced to 6.7% from 6.765% in 2023, for taxes owed in 2024, and to 6.7% from 6.976% for taxes owed in 2025. The 6.7% rate would remain unchanged through