Moody's: US dollar to remain a dominant global reserve for foreseeable future
|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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