What can replace the dollar?

LET ME preface this piece by saying that most of the information below is derived from the works of economist Michael Pettis. Also, my knowledge of currency finance is limited to that of a lay person. With that said… Since the end of the Second World it must be developed enough to War, the US dollar has enjoyed the have resilient capital markets. And status of global reserve currency. In it must be large enough to absorb practical terms, this means that the excess global capital demands. So far, dollar is the most popular and most only the US and the EU meets these demanded currency in the world, requirements. and has allowed the United States an The reason why the ruble, overwhelming level of influence over the yuan or a combination of the global financial system. several other currencies cannot

However, after the American replace the dollar is that being government’s economic warfare the global reserve currency has its against Russia in light of its invasion drawbacks. For a very long time, of Ukraine, several countries have once the US has had to contend with again raised complaints at the dollar’s fleeing manufacturing and slower hegemony. This complaint is nothing growth, both of which is partially new. It has been around for a very long the result of the dollar’s global time, and usually pops up whenever reserve currency status. the US seems to use its economic People buy dollars, which are power to coerce outside forces. then used to buy dollar denominated

The trouble with that gripe is assets, which then artificially raise that although a lot of countries may capital demand for the USdollar. This complain about the dollar, many are is why the United States typically either unable or unwilling to accept suffers trade deficits. It’s because reserve currency status. It requires the US tends to absorb the excess an open economy, which means no demand from other countries. capital controls. The only way it can solve this

I t also requires a strong, problem i s by i ssuing capital developed economy, which means controls, effectively putting up a proverbial wall on all the capital flowing into it. Doing that, though, will not only end the dollar’s reserve status, it may also cause far reaching economic problems in the world. So what can replace the dollar? Nothing can replace the dollar at the moment, and even if there is, it’s doubtful if they are willing to have reserve status. The only way for the dollar to lose its reserve status is if the global system falls, in which case the notion of a global reserve currency becomes redundant./