The End of Exorbitant Privilege: Abandoning the Dollar as a Global Reserve Currency? The United States dollar's status as a global reserve currency is a relic of post World War II economic order.
Its dominance has allowed the US to exert significant influence over international trade and finance, but its privileges also come with costs and risks that are increasingly difficult to ignore.
Why a Global Reserve Currency Matters A global reserve currency facilitates international trade and investment by providing a stable store of value and unit of account.