Reserve currencies
TOPPLED DOLLAR
Daniel Lanyon asks if the dollar ’ s status as the world ’ s reserve currency can be taken for granted in the long term
In the annals of economic history , 2022 will go down as a year not to be forgotten . A brutal dictator waged war on a neighbour , drawing the world into profound instability characterised by surging inflation and plummeting living standards . While the impact on investments was predictably calamitous , one asset that benefited was the US dollar . It reached a 20-year high against other major developed market currencies in November as rising interest rates and its safe-haven status contributed to demand for the world ’ s reserve currency .
Issue 91 - January 2023 / 23 /