IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Prospects for the Evolution of Global Reserves

Listed author(s):
  • Graham Bird

The global reserve system has returned to the top of the agenda in debates about international monetary reform. Much of the contemporary discussion draws on familiar issues but it has been given a new relevance in the aftermath of the global financial crisis of 2008/09. One particular focus relates to the composition of international reserve assets and the role of the dollar. Will the dollar’s preeminent position be eroded and will the dollar be replaced by other international currencies? This paper examines the factors that determine a currency’s international status and assesses various candidate currencies including the euro and the Chinese renminbi. It also analyses the Special Drawing Right (SDR ) as an international reserve asset. It concludes that, while there may be advantages in enhancing the SDR ’s role and endeavouring to implement the commitment made in the Second Amendment to the IMF’s Articles of Agreement to encourage it to become the world’s principal international reserve asset, the more likely outcome is that the dollar will retain its status as the main international currency, although it may be joined by other currencies in a multiple currency system.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE in its journal World Economics Journal.

Volume (Year): 12 (2011)
Issue (Month): 3 (July)
Pages: 191-212

in new window

Handle: RePEc:wej:wldecn:489
Contact details of provider:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wej:wldecn:489. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ed Jones)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.