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reserve currency

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on June 4, 2008 at 10:00:40 am

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Reserve Currency



In early 2008, the Euro gained ground against the supremacy of the U.S. dollar.  Will it gradually supplant it as the world's reserve currency?  The euro’s share as a global reserve currency is steadily increasing and there is a chance that is will overtake the dollar sooner rather than later.  If the UK were to enter the European Monetary Union (EMU), many measures of EU liquidity and market size would surpass those of the U.S.  Continued strengthening of the EUR/USD may accelerate the euro's ascent as a reserve currency but some believe that a new unipolar system based on the Euro is still a very remote possibility and might never materialize.









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