The international payments landscape is expected to become more diverse and fragmented due to the recent growth in the use of local currencies for cross-border payments. In a recent article published from the Atlantic Council, BWC Member Hung Tran explains what has facilitated the implementation of these payments and what this means for the US dollar. Although these developments could narrow the scope of the dollar’s use, Tran asserts that this will not necessarily challenge the dollar’s other key roles, notably its function as a reserve asset and its dominance in international lending and borrowing.

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All views expressed by members are their own and not reflective of the views of the Bretton Woods Committee.