The US Dollar’s Share of Global Reserve Currencies Drops as Japanese Yen’s Share Increases | Economics Bitcoin News

The U.S. dollar’s dominant position as the reserve currency of choice may be in peril, as its share of global currencies held in reserves continues to decline. International Monetary Fund (IMF) data shows, the dollar’s share of reserves dropped from 66% in Q3 of 2014 to just above 60% in Q3 of 2020. This means the dollar’s share has been dropping at a rate of about 1 percentage point per year.

Faltering Reserve Currencies

Meanwhile, as one report suggests, this latest figure represents the dominant currency’s lowest share in almost 8 years. Furthermore, the report also explains that “the decline in the dollar’s share (actually) began 20 years ago when the Euro assumed the place of the predecessor currencies that used to be in the basket of foreign exchange reserves.” According to the data, the year 1991 is the worst one for the dollar. In that year, the dollar’s reported share of reserves dropped to 46%.

How To Get Free Crypto  

In the meantime, the Euro, which was “the last effort by a single currency to dethrone the dollar” as the number one reserve currency, has had its share stuck between 19.5% and 20.6% over the past six years. Similarly, China’s yuan renminbi (RMB) currency, which became an official reserve currency in October 2016, appears not to be making much headway. After the RMB’s inclusion in the IMF’s “basket of currencies that back the Special Drawing Rights (SDRs)” the Asian country’s currency has only garnered a mere 2.13% share of reserves. China is the world’s second-largest economy.

The Yen Ascendancy

On the other hand, only the Japanese Yen appears to have gained after the proportion of the Asian country’ currency held in reserves rose from 3.5% in 2015 to 6% by the end of Q3 of 2020. This feat made “the Yen the third-largest reserve currency.”

In the meantime, the same report explains that while the dollar’s status as the top global reserve currency continues to deteriorate, it would nonetheless “take a decade for the dollar’s share to drop to 50%, with other currencies picking up the slack.” In any case, this deterioration will only to start having an effect on the U.S. when the dollar’s share “drops (to) well below 50%.”

Do you agree that the US dollar’s dominance will continue to deteriorate? Tell us your thoughts in the comments section below.

Coinbase Banner  
Tags in this story

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Go to Source
Author: Terence Zimwara

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.