The dollar is here to stay
Reports of the death of the US dollar as the world’s reserve currency are greatly exaggerated. Fortunately for America, while the dollar is by no means unsinkable, it will not be toppled anytime soon. Threats exist, but rather than coming from abroad, to paraphrase Lincoln, they spring up among us. How the US manages its economy will largely be the determinant factor in the dollar’s continued supremacy. Currently, the dollar makes up about 58 percent of foreign currency reserves worldwide, well ahead of its competitors. The next closest currency is the euro at 20 percent, and then the yen and pound sterling, both at about 5 percent — China’s renminbi is at a paltry 3 percent (just ahead of a real powerhouse, the Canadian dollar).
