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The US dollar will likely remain a dominant global reserve currency foreseeable future, despite the rise of alternatives like the Chinese renminbi, according to ratings agency Moody’s.  

Key quotes (SOurce: Reuters)

  • The future demand for the EUR will depend on the strength of its institutions and risk mitigation mechanisms.
  • It will likely be several decades before the global status of the US dollar is challenged by any currency.
  • Increased linkages between China and other countries will heighten the use of Renminbi as a medium of exchange.
  • A broader opening of China’s capital account would require restructuring of China’s financial system.
  • The status of the pound as a reserve currency is based on inherited position from the pre-Bretton woods colonial era, not representative of the current market view.

 

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