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