theguardian.com 2/4/2021 The US dollar’s hegemony is looking fragile – The modernisation of China’s exchange-rate system could deal the currency a painful blow by Kenneth Rogoff
foreignaffairs.com 7/2020 It Is Time to Abandon Dollar Hegemony Issuing the World’s Reserve Currency Comes at Too High a Price By Simon Tilford and Hans Kundnani
“… How Global Currencies Work is the work of Barry Eichengreen, Arnaud Mehl, and Livia Chitu. Mehl and Chitu are both economists at the European Central Bank. Eichengreen is a professor of economics and political science at the University of California, Berkeley. Their hypothesis is that it is perfectly possible for a plurality of currencies to share the global stage. This is an important thesis, to which currency traders and speculators might want to pay attention. It means, among much else, that the PRC’s renminbi and the US dollar are not necessarily engaged in a sort of iron-cage death match. The rise of the former need not mean the demise of the latter. Further, this new take on global currencies doesn’t make the Bretton Woods Conference out to be as earth shaking an event as is often thought. …. (The) data does not show quite the London-centered financial world presumed by the conventional account. At the beginning of that period, sterling accounted for 64% of reserves, with Germany’s mark and France’s franc also constituting “non-negligible shares.” … For a new player to take central stage within a decade indicates, to these authors, that the lock-in or network effects are not as powerful as they are sometimes made out to be. They were not working for the pound.