Almost eight year ago, we first presented a chart first created by JPMorgan's Michael Cembalest, which showed very simply and vividly that reserve currencies don't last forever, and that in the not too distant future, the US Dollar would also lose its status as the world's most important currency, since it is never different this time. Observers disagree widely on how the end of the dollar’s reign as reserve currency would affect the US economy and average Americans. The trade war is about much more than trade. The US Dollar is the old guard and massive players like India and China are starting to separate themselves from the currency as the two most populated countries in the world attempt to create the next major world reserve currency through a digital, centrally planned cashless system. Federal Reserve of St. Louis. The almighty U.S. dollar may have reached the pinnacle of its strength, but it's unlikely to cede its status as the world’s reserve currency.. Retired neurosurgeon and pundit Dr. Ben Carson thinks it would turn the US into a third world nation and lead to unrest that would lead to martial law, as Off The Grid News recently reported. Accessed May 13, 2020. The world’s great trading nations settled their trade in gold, but they might accept pounds rather than gold, with the confidence that the Bank of England would hand over the gold at a fixed exchange rate upon presentment. Towards the end of Q2 in 2020, Bloomberg reported that Goldman Sachs Group Inc spotlighted that there was a growing concern regarding inflation in the U.S, issuing a warning that the dollar was in danger of losing its crown as the world’s reserve currency. If you haven’t been paying attention then now is as good of a time to start. After the first World War, the US dollar became the main trade currency as the US economy played a key role in world trade. Accessed May 13, 2020. ... a new role for the U.S. dollar: "international reserve currency." J.P. Morgan. China, the world’s second largest economy, has seen its foreign exchange reserves increase again during the last year. In 1944, The Bretton Woods system established a currency regime where the US dollar became the principal reserve currency directly pegged to the price of gold. Federal Reserve History. "Trade Weighted U.S. Dollar Index: Broad, Goods and Services." Toward the end of World War II, the US dollar was given this status by treaty following the Bretton Woods Agreement. Canadian billionaire businessman Ned Goodman predicts the end of the U.S. Dollar as the world's reserve currency. The composition of those reserves is not frequently disclosed but in 2019 the Chinese State Administration of Foreign Exchange announced that as at the end of 2014, US Dollar assets accounted for only 58% of their reserves, down from 79% in 2005. The truth is that SDRs are clumsy and cumbersome. The IMF report recognizes that moving to SDRs is only a partial move away from the U.S. dollar as the world reserve currency and urges the adoption of a currency unit that would be truly international. With World War II coming to an end, they arrived to hammer out a new financial system for the global economy. “Questioning the U.S. Dollar’s Status as a Reserve Currency,” Page 1. It’s about the battle for global supremacy which is taking place between the two largest economies in the world.

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