At the heart of global economic exchanges, one question remains burning: the supremacy of the American dollar in the global economy. This topic sparks intense debates among economists and financial experts around the world, highlighting the crucial importance of this currency on the international scene.
Recent data from the International Monetary Fund (IMF) reveals that, despite a slight decline, the US dollar maintains its dominant position in global foreign exchange reserves. This trend is, however, accompanied by a rise in power of other currencies such as the Australian dollar, the Canadian dollar, the Chinese renminbi and the Korean won, highlighting a gradual diversification of reserve currencies.
The dominance of the US dollar is attributed to several major factors. First of all, the solidity of the American economy plays an essential role in the valuation of this currency on the international scene. In addition, monetary policy decisions made by the United States Federal Reserve directly impact the value of the dollar. Finally, growing geopolitical tensions are helping to strengthen the confidence of investors and economic players in the greenback.
The institution’s analysts stressed that the current situation suggests a continuation of the supremacy of the dollar over the global economy in 2024. Several indicators reinforce this assertion: nearly 60% of global foreign exchange reserves are denominated in US dollars. , more than 88% of transactions in the foreign exchange market involve the dollar and around 40% of international trade is denominated in this currency.
Additionally, the dollar continued to strengthen against a basket of major currencies, consolidating its dominant position on the global financial stage. Despite the challenges and developments in the international economic context, the US dollar remains an undisputed pillar of the global economy.
In conclusion, the supremacy of the US dollar remains a crucial element in global economic dynamics. However, the diversification of reserve currencies and developments in the global economic landscape could lead to a redistribution of the cards in the years to come. Time will tell whether the dollar will continue to reign supreme in the global economy or whether it will have to share its throne with other emerging currencies.