Dollar dominance could give way to a 'tripolar' currency system as China's yuan and the euro rise on the world stage

April 30, 2023

• The dollar's status isn't under threat anytime soon, but the yuan and euro look most likely to cut into its lead.
• A "tripolar" reserve currency system is plausible, economist Stephen Jen told Insider.
• The greenback saw a dramatic erosion as a global reserve currency in 2022, but it's still dominant in international trade. 

• The dollar has been king for decades but its slippage as a reserve currency has raised concerns as to whether a rival currency will dethrone it. 

  But to economist Stephen Jen, the CEO of Eurizon SLJ, a more plausible outcome would be multiple currencies cutting into the dollar's dominance. 

  He recently pointed out that the greenback's nominal share in global reserves eroded at 10 times the pace seen in the last two decades. 

  "Our best guess is that this trend will likely continue, but probably not to a point where a non-dollar currency commands a bigger market share than the dollar," Jen wrote in emailed comments to Insider. "More likely, we will evolve from a unipolar reserve currency world to a multi-polar world."   Full Article