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With less countries and organizations using the dollar to settle international transactions, it slowly chips away at its hegemony of the U.S. dollar as the world’s reserve currency. China is at the epicenter of this transition and is making continued progress in cutting deals outside of the U.S. dollar framework. Deals shown in the infographic are currency flows between countries that have abandoned the dollar in bilateral trade, as well as countries that are considering such measures.
The above edited excerpts, as well as what follows, comes from an introduction* by visualcapitalist.com to an infographic** by sputniknews.com originally entitled Dollar No More which was first posted HERE.
In the short term, however, especially with a crashing Chinese stock market and fledgling Eurozone, the dollar will likely reign supreme. It’s still a stretch for the yuan to make its way into foreign reserve coffers so long as capital controls remain in place and the country’s bond market is not open or transparent to offshore investors. However, Beijing is currently mulling ways to internationalize the yuan, and each step it takes will take China closer to challenging dollar hegemony.
It is not only the Chinese that are starting to question the viability of the dollar. A report in 2010 by the United Nations called for the abandonment of the U.S. dollar as the single reserve currency. The Gulf Cooperation Council has also expressed desires for an independent reserve currency.
*http://www.visualcapitalist.com/the-dollar-is-slowly-losing-its-status-as-the-primary-reserve-currency/ **http://sputniknews.com/infographics/20150430/1021575551.html
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What, the US$ may not remain THE international Currency and nobody but me has a comment?
Amazing.
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