The Currency Will Replace The Us Dollar Essay

840 Words 4 Pages
A reserve currency is a name of the currency that is held in necessary quantities in many institution and governments across the world. This is usually used in most of the international transaction and has an exchange rate for each country through which the business is done. It offers an opportunity for the people living in countries that use the currency to purchase goods more cheaply without having to undergo extra cost as it is the case for other nations. The US dollar is known to be the most dominant currency that has been in use for quite some time. However, other suggestions from different government also want to put their money at a global level. A perfect example is the China authority that focuses on overthrowing the dominance of the United States dollar by their Yuan. Therefore, this paper concentrates at discussing the chances that the Yuan currency will replace the US dollar. The yuan has fewer chances of replacing the US global currency since the American have a well-established background in the world. Most of the nations have stabilized their economies through the use of this particular currency. This is because it has facilitated many international trades with other countries. Additionally, they have formed for them the medium for which they can exchange different transactions in their nations. Therefore, this becomes difficult to convince some of these countries to adopt to another exchange rate (Baumol & Blinder, 2016). This could be due to the reason…

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