Reserve Currency? We Don’t Need No Stinkin’ Reserve Currency
A hot question among economic pundits of late is, “What will replace the US dollar (USD) as the world’s reserve currency?” Perhaps a better question is, “Does there need to be an actual replacement?” Currently, the USD plays several major roles: There would appear to be no current alternative that completely contains every one of these attributes. But recently, there has been a plethora of bi-lateral and multi-lateral trade agreements, particularly among the BRICS nations (Brazil, Russia, India, China, South Africa), which provide the ability to settle trade transactions in local currency or other acceptable payment mechanisms, thus satisfying the USD role number one cited above. Simply put, if a country can settle much of its trade liabilities without requiring the Read More ›
