The dollar will maintain its position as the world’s dominant reserve currency over the next decade, confounding growing calls from some countries for the adoption of alternatives, according to a closely watched annual survey of central banks.
Research by the Official Monetary and Financial Institutions Forum (OMFIF), a UK central banking think-tank, found that reserve banks managing close to a combined $5tn of assets expect the dollar to continue to decline as a proportion of global reserves at a “gradual” pace. However, it will still account for 54 per cent of the total in 10 years’ time, compared with 58 per cent currently, the survey found.
Reserve currencies are foreign assets held in large quantities by central banks for international payments and to support local currencies.