US dollar to remain world's reserve currency, Fed's Waller says

[libertybele]

US dollar to remain world's reserve currency, Fed's Waller says

Federal Reserve Governor Christopher Waller outlined the case for the world continuing to use the U.S. dollar as the primary reserve currency for international trade in remarks on Thursday.

"Recent commentary warning of a possible decline in the status of the U.S. dollar raises concerns about the effects of sanctions against Russia, U.S. political dysfunction, the rise of digital assets, and China’s efforts to bolster usage of the renminbi," Waller said at a conference sponsored by the Global Interdependence Center and the University of the Bahamas in Nassau.

Waller went on to say that none of those concerns has resulted in a notable decline in the dollar's 'outsized' role in the global economy – adding that trends like the increased use of digital assets such as stablecoins, which are overwhelmingly tied to the dollar, tend to increase the U.S. dollar's international profile even further.

"At almost 60 percent of global reserves in 2022, the U.S. dollar is by far the dominant reserve currency. The next leading competitor to the dollar is the euro, with a share of roughly 20 percent," Waller noted in his remarks.

"Although some have pointed to a decreasing share of reserves held in dollars, the dollar share – though down somewhat from the mid-2000s – is actually little changed from the mid-1990s. And while there has been an increase in the share held in renminbi, that share is trivial at about 2 percent," he explained.

Waller added, "To the extent that there has been gradual diversification in reverses since the mid-2000s, it has been into a wide range of other currencies, such as Canadian and Australian dollars."

The Fed governor noted that "U.S. adversaries have few practical alternatives to the dollar, as other prominent reserve currencies – such as the euro, Japanese yen, and British pound – are all issued by close U.S. allies, who participated in sanctions on Russia.".............


https://www.foxbusiness.com/economy/us-dollar-remain-worlds-reserve-currency-feds-waller-says

[Hoodat]

US dollar to remain world's reserve currency, Fed's Waller says

Federal Reserve Governor Christopher Waller outlined the case for the world continuing to use the U.S. dollar as the primary reserve currency for international trade in remarks on Thursday.

Now I'm worried.  The Fed has been wrong over and over again for the last half a century.  If they are saying the dollar will remain the world's reserve currency, then the end must be near.

Here's a clue.  The Fed doesn't get to decide what currency other countries will use.  That decision rests solely on the value and stability of a currency.  And since 2009, the Fed has gone out of its way to trash the dollar.  Seriously, why accept US dollars for Saudi oil when the Fed will turn right around and flood the global market with a freshly printed $2-3 trillion EVERY YEAR, thus driving down the value of what the Saudi's received?