Bloomberg Intelligence's Audrey Childe-Freeman: Dollar remains world's reserve currency but de-dollarisation continues

'Early stages of de-dollarisation'

The US dollar’s status as the ultimate global reserve currency remains largely intact, but a growing number of developments, such as the rise of China’s yuan in the Asia-Pacific region, are starting to question its historic role as the world’s ultimate reserve currency.

Indeed, it could be argued, that more than 50 years since the end of the Bretton Woods system in 1972, so-called FX regionalisation is proceeding and the world is facing the early stages of de-dollarisation. For now, the geography of global trade continues to give the dollar an advantage, but challengers are emerging outside the G10, with the yuan expanding in some trading blocs and gold regaining its appeal in central banks' reserve allocations. Interestingly, the euro is stagnating, with the incomplete nature of monetary union still a challenge. Deep Dive: A potential second Trum...