"When a superior, more stable, more efficient alternative to dollar hegemony arises, the dollar will be displaced as the global reserve currency."
Right, but for the time being, the Dollar remains the prettiest girl in the brothel.
I have a fuzzy recollection of predictions, twenty-ish years ago, that the Euro would supplant the Dollar as the world's reserve currency. After all, the Euro Zone was the biggest economy in the world. Didn't happen. One reason is that a currency union is not the same as a national currency. There are too many different interests tugging it in different directions all at the same time. A synthetic BRICS currency will have the same problem, and perhaps even more so if it's only used for international trade rather than being spendable locally.
"When a superior, more stable, more efficient alternative to dollar hegemony arises, the dollar will be displaced as the global reserve currency."
Right, but for the time being, the Dollar remains the prettiest girl in the brothel.
I have a fuzzy recollection of predictions, twenty-ish years ago, that the Euro would supplant the Dollar as the world's reserve currency. After all, the Euro Zone was the biggest economy in the world. Didn't happen. One reason is that a currency union is not the same as a national currency. There are too many different interests tugging it in different directions all at the same time. A synthetic BRICS currency will have the same problem, and perhaps even more so if it's only used for international trade rather than being spendable locally.
Exactly.