Book Review- The Global Currency Power of the US Dollar Problems and Prospects

Abstract

The United States dollar is the dominant currency for international trade and financial transactions conducted globally. Countries around the world conduct most cross-border transactions as well as hold their foreign reserves in US dollars despite having their own currencies. Some other currencies of other advanced countries or regions such as the pound, the euro, and the yen are also used beyond their territorial domain, but on a much smaller scale than the dollar. To put into perspectives, the dollar accounted for nearly 60 percent of global reserves reported to the International Monetary Fund and constituted approximately 88.3 percent of all foreign exchange transactions. Moreover, more than 40 percent of global payments were done through the dollar.