For decades, the American dollar has been the international currency of choice for investors, for markets and even for other governments: Saudi oil, gold from China —it’s all traded in dollars.
But some recent developments indicate that the long-running supremacy of the dollar isn’t guaranteed. According to a new report from Bloomberg Businessweek, China is challenging the dollar with a crude oil futures contract denominated in yuan, Russia cut its holdings in U.S. currency and, most significantly, some European countries are talking about creating a payment system to work around U.S. sanctions in Iran.
All of this doesn’t mean the dollar is in imminent danger of toppling from its number-one spot, but it is a note of concern for the long-term health of the U.S. economy.
This week on Money Talking, WNYC’s Charlie Herman talks about the issue with Peter Coy, economics editor for Bloomberg Businessweek and the author of “The Tyranny of the U.S. Dollar.” NPR, Oct, 26, 2018