Abstract
In the eighteenth century, Britain was the largest economy of the Western world; London was the center of international trade and finance; the currency was convertible so that sterling became the world’s reserve currency. After World War II, the US dollar dethroned the British sterling to become the world’s leading reserve currency. The dollar accounts for about two-thirds of the global reserves and 88% of daily foreign exchange trades. By the 1960s, the dollar had usurped sterling and was the world’s new reserve currency with 60% of total central bank reserves being held in dollars, twice the level of sterling reserves.
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Yi-Lin Forrest, J., Ying, Y., Gong, Z. (2018). Where Will the US Dollar Go?. In: Currency Wars. Contemporary Systems Thinking. Springer, Cham. https://doi.org/10.1007/978-3-319-67765-1_22
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DOI: https://doi.org/10.1007/978-3-319-67765-1_22
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