Editing Reserve currency (section)

===United States dollar===
{{further|International use of the U.S. dollar|Dedollarisation}}

The [[United States dollar]] is the most widely held currency in the allocated reserves. As of the fourth quarter of 2022, the USD accounted for 58.36% of official foreign exchange reserves.<ref>{{cite news|title=Calls to move away from the U.S. dollar are growing — but the greenback is still king|url=https://www.cnbc.com/2023/04/24/economic-and-political-factors-behind-acceleration-of-de-dollarization.html|website=CNBC|date=April 2023 |last1=Chen|first1=Penny}}</ref><ref>{{cite web|title=Currency composition of International Foreign Reserves|url=https://data.imf.org/?sk=E6A5F467-C14B-4AA8-9F6D-5A09EC4E62A4|website=IMF}}</ref>{{update needed|reason=source dated 2022|date=September 2024}} This makes it somewhat easier for the United States to run higher trade deficits with greatly postponed economic ramifications or even postponing a [[currency crisis]]. Central bank US dollar reserves, however, are small compared to private holdings of such debt. If non-United States holders of dollar-denominated assets decided to shift holdings to assets denominated in other currencies, then there could be serious consequences for the US economy. The decline of the pound sterling took place gradually over time, and the markets involved adjusted accordingly.<ref name=Schenk_2009/> However, the US dollar remains the preferred reserve currency in the 2010s because of its stability due to scale and liquidity.<ref>{{cite news|url=https://www.economist.com/business-finance/displaystory.cfm?story_id=16064067&source=hptextfeature |title=In a world of ugly currencies, the dollar is sitting pretty |newspaper=The Economist|date= 6 May 2010|access-date=22 August 2010}}</ref>

The US dollar's position in global reserves is often questioned because of the growing share of unallocated reserves, and because of the doubt regarding dollar stability in the long term.<ref>[http://online.wsj.com/article/SB10001424052748703313304576132170181013248.html Why the Dollar's Reign Is Near an End]</ref><ref>[https://www.reuters.com/article/us-economy-un-idUSTRE74O6EI20110525 "U.N. sees risk of crisis of confidence in dollar"], Reuters, 25 May 2011</ref> However, in the aftermath of the 2008 to 2010 financial crisis, the dollar's share in the world's foreign-exchange trades rose slightly from 85% in 2010 to 87% in 2013.<ref>[http://www.project-syndicate.org/commentary/jeffrey-frankel-argues-that-the-dollar-s-status-as-the-world-s-top-international-currency-is-not-in-jeopardy "The Dollar and Its Rivals"] by Jeffrey Frankel, ''Project Syndicate'', 21 November 2013</ref>{{better source needed|reason=opinion blog|date=May 2023}}{{update inline|date=May 2023}}

The dollar's role as the undisputed reserve currency of the world allows the United States to impose unilateral sanctions against actions performed between other countries, for example the American fine against [[BNP Paribas]] for violations of U.S. sanctions that were not laws of France or the other countries involved in the transactions.<ref>{{cite news |url=https://www.nytimes.com/2014/07/03/upshot/the-dollars-big-role-in-foreign-policy.html |title=In BNP Paribas Case, an Example of How Mighty the Dollar Is |last1=Irwin |first1=Neil |date=1 July 2014 |website=www.nytimes.com |publisher=The New York Times Company |access-date=13 July 2014}}</ref> In 2014, China and Russia signed a 150 billion yuan [[central bank liquidity swap]] line agreement to get around European and American sanctions on their behaviors.<ref>{{cite news |url=https://sg.news.yahoo.com/china-russia-seek-international-justice-agree-currency-swap-185306361.html |title=China, Russia seek 'international justice', agree currency swap line |last1=Smolchenko |first1=Anna |date=13 October 2014 |website=news.yahoo.com |publisher=AFP News |access-date=13 October 2014}}</ref>{{better source|reason=Yahoo news, is there no expert secondary sources?|date=November 2023}}

In 2025, after the decision by the [[Trump administration]] to impose [[Tariffs in the second Trump administration|tariffs as protectionist trade policy]], financial institutions began to rethink the role of US Dollar as reserve currency.<ref>{{Cite news |last=Partington |first=Richard |date=2025-04-11 |title=The damage is done: Trump's tariffs put the dollar's safe haven status in jeopardy |url=https://www.theguardian.com/business/2025/apr/11/the-damage-is-done-trumps-tariffs-put-the-dollars-global-reserve-status-at-risk |access-date=2025-04-14 |work=The Guardian |language=en-GB |issn=0261-3077}}</ref> For example, Ray Attrill, head of FX strategy at [[National Australia Bank]], said, "The whole premise of the dollar as a reserve currency is being challenged, effectively, by what we've seen since Trump's election."<ref>{{Cite news |last=Wee |first=Rae |date=2025-04-11 |title=Mighty U.S. dollar feels heat as Trump's tariffs spark trade turmoil |url=https://www.reuters.com/markets/currencies/mighty-us-dollar-feels-heat-trumps-tariffs-spark-trade-turmoil-2025-04-11/ |access-date=2025-04-14 |work=Reuters}}</ref> George Saravelos at [[Deutsche Bank]] also said that “the market is re-assessing the structural attractiveness of the dollar as the world’s global reserve currency, and is undergoing a process of rapid de-dollarisation.”<ref>{{Cite news |last=Stepek |first=John |date=2025-04-11 |title=Are the US Dollar's Days of Dominance Numbered? |url=https://www.bloomberg.com/news/newsletters/2025-04-11/trump-tariffs-are-the-us-dollar-s-days-of-dominance-numbered |access-date=2025-04-14 |work=Bloomberg}}</ref>