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28.12.2023, 15:10

International monetary system is best organised around a single reserve currency – Natixis

The Dollar's importance as a reserve currency and as the currency of denomination for trade and financial transactions has not diminished despite the declining importance of the United States in the global economy, analysts at Natixis report.

Declining weight of the US in the global economy

The US accounted for 35% of global GDP in 1986, 26% in 1990, 29% in 2000, 24% in 2010, and 25% in 2022, so the size of the US in relation to the global economy has been steadily declining.

However, the Dollar’s share of trade invoicing, foreign exchange reserves, international bond issuance and foreign exchange transactions has not fallen.

This resilience of the Dollar's economic and financial weight, despite the decline in the economic and financial weight of the US, shows that the international monetary system is best organised around a single reserve currency.

 

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