(pp.003-013) B. Wessels ‘The future of the U.S. Dollar as an international key currency’, World Sustainable Development Outlook, 2010


Abstract: For the past 60 years and more the international monetary system’s need for international money was discharged by the U.S. dollar as the supreme international currency. Although the dollar’s global role is still virtually unchallenged, worrying cracks are appearing in the supporting economic determinants of the dollar’s key currency status. This paper analyzes the need for an international means of payment, the attributes of the key currency country and the determinants of key currency status. The paper indicates that certain characteristics of and trends in the U.S. economy supporting its key currency status have reached disquieting negative magnitudes that do not augur well for the future of the dollar. Nevertheless, the absence of a currency competitor, the strength of network externalities and historical inertia will, together with the dominant milieu role played by the United States, possibly keep the dollar in its superior position for a considerable time to come.
Keywords: dollar supremacy; American hegemony; key currency status; international liquidity.

Outlook Wessels-Itemid=.pdf
Outlook Wessels-Itemid=.pdf

Please note, you need to be a WASD member to login and download publications. Logged-in members will see a 'Download' button in the box above.

If you do not have a login, you can register to become a member.

If you are are already a member, please login below.


Be the first to comment

Leave a Reply

Your email address will not be published.


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