Can the US dollar be supplanted as the world’s currency?

 Contrary to some expert predictions, the US dollar continues to serve the world as the ‘de facto’ international currency and safe asset in times of crisis. Gordon Alexander Schlicht writes that the dollar is irreplaceable due to its incumbency, stability, liquidity, and absence of present alternatives.

While academic discourse has long prophesied a future of currency multipolarity, 2022 has shown us that the idea remains just that: academic. Amid global recession fears and a Federal Reserve resurfacing with long-lost resolve to hike interest rates, the greenback is on a run. The US dollar is up 14 per cent against the euro, 18 per cent against the pound sterling, and a whopping 24 per cent against the yen this year. If you ask the foreign exchange market, this paints a crisp picture. There is a sole and uninterrupted monetary hegemon: the United States. But why is this role unthreatened?

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