US Dollar Dominance and the Rise of Nontraditional Reserve Currencies

From blogs.imf.org

The US dollar has long played an outsized role in global markets. It continues to do so even as the American economy has been producing a shrinking share of global output over the last two decades. But although the currency’s presence in global trade, international debt, and non-bank borrowing still far outstrips the US share of trade, bond issuance, and international borrowing and lending, central banks aren’t holding the greenback in their reserves to the extent that they once did. As the Chart of the Week shows, the dollar’s share of global foreign-exchange reserves fell below 59 percent in the final quarter ... (full story)