The stealth erosion of dollar dominance and the rise of nontraditional reserve currencies

Arslanalp, Serkan; Eichengreen, Barry; Simpson-Bell, Chima

doi:10.1016/j.jinteco.2022.103656

Cited by 35 publications

(37 citation statements)

References 17 publications

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“…Aizenman et al (2020) assembled data for 58 countries from reports to the IMF on reserves in the form of nontraditional currencies. Arslanalp et al (2022) used more detailed data disclosed by 80 economies utilizing the dataset compiled by Ito and McCauley (2020) as updated by Chinn et al (2022), the IMF's Data Template and central bank annual reports.…”

Section: Conceptual Frameworkmentioning

confidence: 99%

Reserve Currencies in an Evolving International Monetary System

Lusinyan

Gamba

et al. 2022

Open Econ Rev

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Despite major structural shifts in the international monetary system over the past six decades, the US dollar remains the dominant international reserve currency. Using a newly compiled database of individual economies’ reserve holdings by currency, this paper finds that financial links have been an increasingly important driver of reserve currency configurations since the global financial crisis, particularly for emerging market and developing economies. The paper also finds a rise in inertial effects, implying that the US dollar dominance is likely to endure. But historical precedents of sudden changes suggest that new developments, such as the emergence of digital currencies and new payments ecosystems, could accelerate the transition to a new landscape of reserve currencies.

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Section: Conceptual Frameworkmentioning

confidence: 99%

Reserve Currencies in an Evolving International Monetary System

Lusinyan

Gamba

et al. 2022

Open Econ Rev

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“…12 See Arslanalp et al (2022) for an analysis of the changing composition of global foreign exchange reserves.…”

Section: The Renminbi In International Portfoliosmentioning

confidence: 99%

“…First, we need to estimate the share of reserves in RMB by all countries excluding China. China became a COFER reporter between 2015 and 2018 (Arslanalp et al (2022)) but does not disclose what share of its reserves it reported to COFER at any point in time during the transition. We therefore assume that it increased its disclosure share at a constant rate between 2015 and 2018 (25% at end of 2015, 50% at end of 2016, 75% at end of 2017, 100% at end of 2018).…”

Section: Aia Aggregate and Bilateral Bond Holdingsmentioning

confidence: 99%

Internationalizing Like China

Clayton

Santos

Maggiori³

et al. 2022

SSRN Journal

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“…The United States established a world monetary system with the U.S. dollar as the core. Since then, despite some negligible fluctuation, the U.S. dollar has become the world's clearing currency and reserve currency [2]. It seems this system could hardly be challenged until many events like the financial crisis of 2007-2008 emerged.…”

Section: Introductionmentioning

confidence: 99%

Relationship Analysis COVID-19 Pandemic and cryptocurrency market with Machine Learning

Wu¹

2022

HSET

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The global economy receives a catastrophic blow due to the COVID-19 epidemic, with long-term pessimism shown towards the global market and exponential increasing expectation for looking for a reliable safe-haven asset. Now, it seems the possible alternatives to traditional currencies issued and backed by governments have primarily emerged - in the form of Bitcoin and Ethereum, as well as several other cryptocurrencies. Cryptocurrencies have been on the market for a long time and have been controversial in the international financial markets for their unique properties. Since the outbreak of COVID-19, the price of cryptocurrencies has seen an unprecedented increase. Whether the price increase of cryptocurrencies is linked to the COVID-19 outbreak is a mystery. This paper will focus on exploring this question through a linear regression machine learning model. The data in the U.S.A are used here. Our results show that the price of bitcoin is significantly related to the price of Ethereum. There is some correlation between covid-19 new cases incensement and the price of Bitcoin and Ethereum, indicating the legitimacy of predicting cryptocurrencies’ price using covid-19 new cases incensement as a factor.

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The stealth erosion of dollar dominance and the rise of nontraditional reserve currencies

Cited by 35 publications

References 17 publications

Reserve Currencies in an Evolving International Monetary System

Reserve Currencies in an Evolving International Monetary System

Internationalizing Like China

Relationship Analysis COVID-19 Pandemic and cryptocurrency market with Machine Learning

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