Paper Title :The US Dollar and its Status as a Reserve Currency – An Analysis

Author :Balasundram Maniam, Kevin Stewart, Hadley Leavell

Article Citation :Balasundram Maniam ,Kevin Stewart ,Hadley Leavell , (2017 ) " The US Dollar and its Status as a Reserve Currency – An Analysis " , International Journal of Management and Applied Science (IJMAS) , pp. 33-44, Volume-3,Issue-2

Abstract : The United States dollar has maintained its place as the world’s reserve currency for over half a century. This status may be subject to change in the near future. As the U.S. faces economic problems as a result of using the benefits of being a reserve currency, the idea of the dollar maintaining its dominance in the world no longer seems so certain. This paper looks at how the dollar began to decline from its height of power and whether it can maintain its status in global finance. For the dollar to cease being the world’s reserve currency, it follows that another currency must take its place in the financial world. Alternatives to the dollar, such as the euro and Chinese RMB, have entered the world stage and intend to challenge the dollar’s place on top of the financial world. Special Drawing Rights, a super-sovereign currency first introduced almost fifty years ago as a reserve currency but soon marginalized, has returned as a possible alternative that presents a radical way of doing world commerce going forward. This paper is an investigation into the strength of the dollar and into the viability of a potential challenger to the dollar’s reign as a reserve currency. Keywords— Reserve Currency, Dollar, Euro, RMB, Special Drawing Rights.

Type : Research paper

Published : Volume-3,Issue-2

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