The article I am quoting below is an opinion piece, yet Saft is correct, the dollar will remain the world's currency.
The dollar was determined to be the globe's currency after World War II upon world financier consensus. The dollar is intimately connected with virtually all things pertaining to economics world wide. It is the firmament of banks in all countries.
China is at present the world's third largest economy after the USA and Japan. China's interests do not dominate the world's economy regardless of what Zhou Xiaochuan imagines. His sentiment has been expressed before, recall how those suggestions succeeded.
Reuters: World stuck with the dollar, more’s the pity
The idea of creating a global currency, as espoused by China earlier this week, is interesting, has a certain amount of merit and is simply not going to happen any time soon.
In fact you could say the dollar’s “extraordinary” strength can only be fully explained when you take into account the fact that foreign central banks keep piling up huge reserves of the thing and that it is the international medium of exchange for commodities and energy, well really for global trade and financial intermediation.
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