Despite global shifts, analysts agree the US dollar’s reserve currency status is unlikely to be replaced for decades.
Since the 1940s, the US dollar has held firm as the global reserve currency, driving international trade and reinforcing the status of the United States as an economic superpower.
In recent years, however, some countries have expressed opposition to the US dollar’s longstanding economic dominance.
The BRICS economic bloc, named for its founding members, Brazil, Russia, India, China, and South Africa, has actively sought to reduce its reliance on the US dollar. China has even pushed for “de-dollarisation”, by promoting its currency, the yuan, and forming currency swap agreements with other countries.
Christine Lagarde, president of the European Central Bank, recently noted that a “shift” was under way that would allow for the “euro to gain global prominence”.
