us dollar became reserve currency on december 23, 1913.
us dollar became reserve currency on december 23, 1913.
when did the us dollar become reserve currency?
december 23, 1913
the euro is currently the second most commonly held reserve currency, comprising about a quarter of allocated holdings. after world war ii and the rebuilding of the german economy, the german deutsche mark gained the status of the second most important reserve currency after the us dollar. when the euro was introduced on 1 january 1999, replacing the mark, french franc and ten other european currencies, it inherited the status of a major reserve currency from the mark. since then, its contribution to official reserves has risen continually as banks seek to diversify their reserves, and trade in the eurozone continues to expand.
reserve currency
former u.s. federal reserve chairman alan greenspan said in september 2007 that the euro could replace the u.s. dollar as the world's primary reserve currency. it was "absolutely conceivable that the euro will replace the us dollar as reserve currency, or will be traded as an equally important reserve currency." econometric analysis by jeffrey frankel and menzie chinn in 2006 suggested that the euro could replace the u.s. dollar as the major reserve currency by 2020 if either the remaining eu members, including the uk and denmark, adopted the euro by 2020, or the recent depreciation trend of the dollar persisted into the future. in recent years, the euro's share of the worldwide currency reserve basket has continued to increase—albeit at a slower rate than before the beginning of the worldwide credit crunch related recession and eurozone crisis, which harmed the euro and slowed its adoption. since 2009, the reserve currency use of the euro has continued to drop, down to 23.9 percent in 2013.
reserve currency