In a recent OMFIF article, BWC Advisory Council Member Mark Sobel discusses the current reality and future implications of a multipolar international currency system. According to him, the US dollar has been the world’s safest asset for many years. However, he points out that its share of reserves has decreased by 70% over the past 25 years. Comparatively, the euro has large share of global reserves, while the renminbi acts as a key cross-border international payment system. With data from the IMF showing growing store-of-value demand for Australian, Singapore, and Canadian dollars, Sobel acknowledges the reality of a multilateral currency system. He claims that while global economic and financial performance is the most important focus, it is crucial economists develop greater definitional and analytical clarity on the increasingly multilateral state of the global economy. 

To read the full article, click here.

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