Monday 23 Jul 2018 | 16:08 | SYDNEY
Monday 23 Jul 2018 | 16:08 | SYDNEY

Global reserve currency: Still searching


Mark Thirlwell

16 June 2010 14:29

I've posted before about the quest for a possible alternative to the US dollar as the world's reserve currency. The leading candidate was supposed to be the euro, but that prediction isn't looking so hot at the moment and may even be headed the way of earlier forecasts for the yen. This has opened up the field to new competition. Setting aside manufactured solutions like the SDR, the yuan is most people's long-term bet.

In the meantime, since the big players don't look as attractive as they used to, the search is for alternative safe havens. The Swiss Franc has long been a contender here, although the Swiss National Bank is doing its best to fend off appreciation in a way increasingly reminiscent of the efforts of the People's Bank of China. 

Last year, currency analysts were touting the Norwegian Krone as a safe haven currency. And the idea of resource-backed currencies as safe havens may be catching on: reserve managers in Russia are now reportedly considering adding the C$ and A$ to their reserves for the first time.

Photo by Flickr user TW Collins, used under a Creative Commons license.