VoxEU Video Exchange Rates International Finance Monetary Policy

Are we moving away from the dollar?

The USA currently accounts for only about 22% of the global economy in terms of GDP and trade, however the dollar has kept its status as the dominant international currency. Barry Eichengreen believes this imbalance will not persist, and the dominance of the dollar as cross-border currency will inevitably decline. The development of new technologies has made it easier to trade in currencies of smaller economies, such as Canada, Australia, South Korea, Sweden. In his view, this is a positive development in the international monetary landscape, recognizing the importance of economies, other the Unities States, in providing liquidity to support 21st century globalization.