Dollar's Dominance as Global Reserve Currency Set to Continue Strong
The dollar's share of global foreign reserves held by central banks has increased from 60.8% in 2014 to 63.8% in 2015, according to IMF data. Exchange rate fluctuations will impact the dollar's share in the short term, while a more freely traded Chinese currency could reduce China's reliance on the dollar. Political uncertainties in the euro-area may also decrease the euro's role as a reserve currency.