{"id":20240,"date":"2023-04-26T04:47:40","date_gmt":"2023-04-26T04:47:40","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/reserve-currency-status-should-no-longer-be-taken-for-granted-economics-bitcoin-news\/"},"modified":"2023-04-26T04:47:40","modified_gmt":"2023-04-26T04:47:40","slug":"reserve-currency-status-should-no-longer-be-taken-for-granted-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/reserve-currency-status-should-no-longer-be-taken-for-granted-economics-bitcoin-news\/","title":{"rendered":"Reserve Currency Status Should No Longer Be Taken for Granted \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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European Central Bank (ECB) President Christine Lagarde has warned that the U.S. dollar\u2019s reserve currency status \u201cshould no longer be taken for granted.\u201d Acknowledging de-dollarization efforts by various countries, she stressed: \u201cNew trade patterns may have ramifications for payments and international currency reserves.\u201d<\/strong><\/p>\n

ECB\u2019s Christine Lagarde on De-Dollarization and Alternative Currencies<\/h2>\n

The president of the European Central Bank (ECB), Christine Lagarde, shared her thoughts on the de-dollarization trend happening across the globe in an interview with the Council on Foreign Relations last week.<\/p>\n

Noting that the U.S. dollar has become \u201cthe international, the global reserve, and the transaction currency\u201d with the euro in second place, she warned that \u201cnew trade patterns may have ramifications for payments and international currency reserves.\u201d The ECB president continued: \u201cIn recent decades, China has already increased over 130-fold its bilateral trade in goods with emerging markets and developing economies, with the country also becoming the world\u2019s top exporter \u2026 New trade patterns may also lead to new alliances.\u201d<\/p>\n

Lagarde added, \u201cRecent research indicates that there is a significant correlation between a country\u2019s trade with China and its holding in renminbi as reserves.\u201d Noting that \u201cOne study finds that alliances can increase the share of a currency in the partner\u2019s reserve holdings by roughly 30 percentage points,\u201d the ECB chief cautioned:<\/p>\n

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All this could create opportunities for certain countries seeking to reduce their dependency on our Western payment system and currency frameworks.<\/p>\n<\/blockquote>\n

However, Lagarde emphasized: \u201cThese developments do not point to an imminent loss of dominance for the U.S. dollar or for the euro \u2026 So, so far the data do not show substantial changes in the use of international currencies.\u201d Nonetheless, she admitted that data do suggest:<\/p>\n

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International currency status should no longer be taken for granted, and that we should be really attentive to the currency in which trade transactions are organized.<\/p>\n<\/blockquote>\n

A growing number of countries are using local currencies for trade settlements instead of the U.S. dollar. In addition, the BRICS nations (Brazil, Russia, India, China, and South Africa) are reportedly creating a new type of currency that will further reduce their dependence on the USD.<\/p>\n

What do you think about the statements by ECB President Christine Lagarde? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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