Manifest currency? U.S. dollar’s global dominance not set in stone

May 23, 2012

Incumbency, it is often said, confers many advantages.

Sitting U.S. presidents certainly have reaped its benefits – in the past 80 years, only three have been unseated.

China renminbi as reserve currency: yuan a bet?

February 8, 2012

China’s importance to the global economy makes it difficult to believe the role of the yuan in foreign exchange will not continue to expand. Will that dominance advance sufficiently to make the Chinese renminbi one of the world’s reserve currencies? A new study from the Brookings Institution suggests that in the long run, the ascendance of the yuan to reserve-currency standing is likely. It notes that of the six largest economies in the world, China is the only one whose currency does not have reserve status. But the road to getting there will be long and tortuous, the study warns, and there will be plenty of potholes.

Is it time to ditch the dollar?

July 8, 2009

Judging from the draft communique of the G8 leaders meeting in L’Aquila, no one is in a particular hurry to talk about ending the domination of the dollar in world  currency reserves.  Our correspondents at the Italian summit report that the debate being pushed by China and others is likely to be played down.

from Summit Notebook:

The Esperanto currency

July 8, 2009

Hiroshi Watanabe, president of the Japan Bank for International Cooperation, saw his share of dollar buying intervention during decades at the nation's finance ministry.  But the market veteran says despite prevalent talk recently, a shift away from the greenback as the world's reserve currency may be great in theory, but like the language of Esperanto short on daily practitioners.

from Global Investing:

The Big Five: themes for the week ahead

July 6, 2009

Five things to think about this week:

Q3 - CLUES AND CUES
- Global equity markets started the quarter positioned for economic stabilisation after a strong Q2 performance but, even so, EPFR data shows less than a third of the cash that flooded into money market funds in 2008 has exited in the year to date. The Q2 reporting season, which is about to kick off (Alcoa out this week), will show whether there are reasons for investors to draw down their cash holdings further. The U.S. data that came out before the long July 4 weekend held more negative surprises than positive ones, and macroeconomic confirmation of recovery will be needed to tempt more wary investors into equities.