2011International Business & Economics Research Journal (IBER)Open access

Can The Dollar Remain The Worlds Most Important Reserve Currency?

Robert Carbaugh

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Abstract

In the future, there is no one currency that is likely to replace the dollar as the main reserve currency. Although the euro and yen meet some of the requirements of a reserve currency, neither is sufficiently strong to take over. Instead, the world might evolve towards a multiple reserve-currency system, shared among the dollar, euro, and yen, (or perhaps the yuan?) at some point in the future. It remains to be seen where the dollar is going and whether Paul Volckers concerns will be realized in the years ahead.

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In the future, there is no one currency that is likely to replace the dollar as the main reserve currency. Although the euro and yen meet some of the requirements of a reserve currency, neither is sufficiently strong to take over. Instead, the world might evolve towards a multiple reserve-currency system, shared among the dollar, euro, and yen, (or perhaps the yuan?) at some point in the future. It remains to be seen where the dollar is going and whether Paul Volckers concerns will be realized in the years ahead.

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In the future, there is no one currency that is likely to replace the dollar as the main reserve currency. Although the euro and yen meet some of the requirements of a reserve currency, neither is sufficiently strong to take over. Instead, the world might evolve towards a multiple reserve-currency system, shared among the dollar, euro, and yen, (or perhaps the yuan?) at some point in the future. It remains to be seen where the dollar is going and whether Paul Volckers concerns will be realized in the years ahead.

Key concepts: Reserve currency, Liberian dollar, Currency, Foreign-exchange reserves, Monetary economics, Economics, Us dollar, Point (geometry)

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