As China and Russia and other countries seek their own monetary system, the United States and the euro (1.0972,000, 0.00%) should not consider the international status of its currency as a matter of course.
The European Central Bank governor Ragard said that at the time of China and Russia and other countries seeking to establish their own monetary system, the United States and the euro zone should not consider the international status of its currency as a matter of course.In view of the rise of China as a global country, the surge in domestic debt in the United States, and geopolitical challenges, some commentators have questioned the US dollar as the world's reserve currency for 80 years.
Lagarde said that "new global maps" are drawing, and some countries are seeking to use RMB (6.8775, 0.0009,01%) or Indian rupees as alternative currencies to accumulate gold or establish their own payment systems.
"These progress does not mean that the dominance of the US dollar or euro is about to lose," Lagarde said."So far, data has not showed substantial changes in the use of international currencies."
She said: "But they did show that international currency status should not be considered for granted."
According to data compiled by the European Central Bank, about 60%of the world's foreign exchange reserves and international debt are priced in US dollars, and the euro ranks second in a 20%ratio.
So far, the US authorities have denied that the global dominance of the US dollar is about to end, and even implies that the launch of the digital dollar may consolidate the global dominant position.
The European Central Bank also hopes that the euro euro can promote its overseas use, although it warns that this will also bring risks, such as opening the door for money laundering, or stimulating the crowding of vulnerable currencies during the crisis.
