You’d imagine that the dollar’s stature has fallen over the last 10 years, given the U.S. financial crisis, the rise of China, and simply due the media bashing it has sustained internationally.Funny thing is that it continues to be used just like it used to be, and even more so.
According to U.S. federal reserve economist Linda Goldberg, the dollar’s share of international transactions stood at 86% in 2007, which is just above its share back in 1995.
WSJ: “Overall, despite market turbulence and substantial movements in the value of the dollar over the past decade, the dollar has not declined in prominence either as a central currency for exchange rate arrangements or as an international reserve currency,” she writes. The euro, which was touted as a big rival to the dollar, hasn’t been much of a challenger—at least so far.
Perhaps the dollar is akin to Coca-Cola and McDonald’s. The entire world loves to bash it as an American monstrosity, yet in the end the world can’t get enough of it.
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