US dollar – journey to reserve currency status and where to from here?

From CNBC – a short history of how the US dollar became the reserve currency and could that status be under threat. The main points from the video are:

  • how investors rush to buy US$ during crisis times
  • the history behind the gold standard
  • 88% of foreign exchange transactions are done in US$
  • Could other currencies threaten the US$ as the global reserve currency?
  • Central banks have added the Chinese Yuan as part of its reserves.
  • European autonomy is being mooted so that they are independent of payment channels in the US$
  • Holdings of of US$ reserves in the global banking system – see image below

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