June 25, 2024 — A paper co-authored by Menzie Chinn, Hiro Ito, and me has just been published at the JIMF. It finds that US size, the ability of the dollar to hold its value, and inertia continue to support the dollar’s #1 status as an international reserve currency. And that the threat of sanctions against other countries has yet to impact aggregate global $ holdings by central banks. (Ungated WP version.)
Chinn, Frankel and Ito: “The Dollar versus the Euro as International Reserve Currencies”