FRANKFURT (Reuters) -The United States and the euro zone should not take the international status of their currencies for granted as countries such as China and Russia seek to create their own systems.
The dollar’s 80-year-old reign as the world’s reserve currency is being called into question by some commentators in light of China’s rise as a global power, burgeoning debt at home and geopolitical challenges to Western influence from Ukraine to Taiwan.
Lagarde said “a new global map” was being drawn, with some countries seeking alternative invoicing currencies such as the as the Chinese renminbi or the Indian rupee, accumulating gold or setting up their own payment systems.
“These developments do not point to any imminent loss of dominance for the U.S. dollar or the euro,” Lagarde said in a speech. “So far, the data do not show substantial changes in the use of international currencies.”
“But they do suggest…
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