For years, the U.S. dollar has functioned as a global financial standard. Central banks across the globe, in fact, rely on dollars to preserve wealth. Businesses and individuals alike use it for trade. It’s pretty astonishing that about 90% of all forex transactions involve the dollar. It’s essentially the world’s money, the leading “reserve currency.”
But is there a shift happening? What if perceptions of the dollar start to change?
In today’s episode, we discuss what “reserve currency” really means. Why is the dollar considered this? And if it were to lose its prime status, what alternatives might take its place?
This episode of Planet Money was produced with contributions from Emma Peasley and James Snead. Marianne McCune provided editorial support, while design was created by Kwesi Lee. Alex Goldmark served as the executive producer.
Check out some relevant resources: Doltrap by Eswar Prasad, Excessive Privilege by Barry Eichengreen, and Our Dollars. Your Problem by Ken Rogoff.
You can listen for free on various platforms, such as Apple Podcasts, Spotify, or anywhere else you get your podcasts.
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Music featured includes tracks from NPR Source Audio, titled “Virtual Machine,” “Fake Blood,” and “Successful Secret.”
