{"id":57352,"date":"2021-04-01T07:57:20","date_gmt":"2021-04-01T12:57:20","guid":{"rendered":"https:\/\/olduvai.ca\/?p=57352"},"modified":"2021-04-01T07:57:20","modified_gmt":"2021-04-01T12:57:20","slug":"us-dollars-status-as-dominant-global-reserve-currency-drops-to-25-year-low","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=57352","title":{"rendered":"US Dollar\u2019s Status as Dominant \u201cGlobal Reserve Currency\u201d Drops to 25-Year Low"},"content":{"rendered":"
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US Dollar\u2019s Status as Dominant \u201cGlobal Reserve Currency\u201d Drops to 25-Year Low<\/a><\/h3>\n<\/header>\n
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Central banks getting nervous about the Fed\u2019s drunken Money Printing and the US Government\u2019s gigantic debt? But still leery of the Chinese renminbi.<\/strong><\/p>\n

The global share of US-dollar-denominated exchange reserves dropped to 59.0% in the fourth quarter, according to the IMF\u2019s COFER data released today. This matched the 25-year low of 1995. These foreign exchange reserves are Treasury securities, US corporate bonds, US mortgage-backed securities, US Commercial Mortgage Backed Securities, etc. held by foreign central banks.<\/p>\n

Since 2014, the dollar\u2019s share has dropped by 7 full percentage points, from 66% to 59%, on average 1 percentage point per year. At this rate, the dollar\u2019s share would fall below 50% over the next decade:<\/p>\n

\"\"<\/p>\n

Not included in global foreign exchange reserves are the Fed\u2019s own holdings of dollar-denominated assets, its\u00a0$4.9 trillion in Treasury securities and $2.2 trillion in mortgage-backed securities<\/a>, that it amassed as part of its QE.<\/p>\n

The US dollar\u2019s status as the dominant global reserve currency is a crucial enabler for the\u00a0US government to keep ballooning its public debt<\/a>, and for Corporate America\u2019s relentless efforts to\u00a0create the vast trade deficits by offshoring production to cheap countries<\/a>, most prominently China and Mexico. They\u2019re all counting on the willingness of other central banks to hold large amounts of dollar-denominated debt.<\/p>\n

But it seems, central banks have been getting just a tad nervous and want to diversify their holdings \u2013 but ever so slowly, and not all of a sudden, given the magnitude of this thing, which, if mishandled, could blow over everyone\u2019s house of cards.<\/p>\n

20 years of decline.<\/strong><\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n

wolfstreet, wolf richter, us dollar, world reserve currency, central banks, money printing, fed, us federal reserve, money, us debt, debt, united states<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

US Dollar\u2019s Status as Dominant \u201cGlobal Reserve Currency\u201d Drops to 25-Year Low Central banks getting nervous about the Fed\u2019s drunken Money Printing and the US Government\u2019s gigantic debt? But still leery of the Chinese renminbi. The global share of US-dollar-denominated exchange reserves dropped to 59.0% in the fourth quarter, according to the IMF\u2019s COFER data […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,195,303,536,538,827,1576,839,3650,4254,4255,5482],"class_list":["post-57352","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-debt","tag-fed","tag-money","tag-money-printing","tag-united-states","tag-us-debt","tag-us-dollar","tag-us-federal-reserve","tag-wolf-richter","tag-wolfstreet","tag-world-reserve-currency"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=57352"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57352\/revisions"}],"predecessor-version":[{"id":57353,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57352\/revisions\/57353"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=57352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=57352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=57352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}