The IMF’s latest survey of official foreign exchange reserves shows that the share of US Dollar reserves held by central banks fell to 55 per cent during the 1st quarter of 2021 — its lowest level in 25 years.
According to the IMF, this partly reflects the declining role of the US dollar in the global economy in the face of competition from other currencies used by central banks for international transactions.
Below are some currencies that are predicted to give the dollar a run for its money:
The Euro is already the world’s second-biggest reserve currency with roughly €2.5 trillion ($2.94 trillion) in central banks globally.
The euro presents itself as an alternative reserve currency because of several advantages:
- Despite economic mismanagement by a few member states like Greece and Spain, the Eurozone is, by and large, made up of healthy, well-regulated economies with a…