In this article, we shall look further upon the impacts that currency internationalization has not only on the issuer’s economy but also on its foreign policy, international power and status, as stemming from each currency function (medium of exchange, unit of account, store of value, both at the private and the public level). This will notably allow us to understand the main signals and data that we shall have to monitor and analyse to assess the future of the US dollar supremacy and, consequently, the effects that its eventual collapse could have at the international level.
In the previous article, we started pointing out that currency internationalization brings benefits and costs to the issuing country from both an economic and a geopolitical point of view, focusing notably on fundamentals.
Our next article will therefore dig deeper into the role of petrodollars and explore its link to the status of the US dollar on the world stage.
About the author: Leonardo Frisani (MA Paris) focuses currently on challenges to the US Dollar supremacy. Beyond that, his specialisation is in international security, and his main interests are in geopolitics, macroeconomics, climate change, international energy and history.
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