Every few years, we hear predictions of the imminent demise of the US$ as the world& #39;s anchor currency. Here is my paper from 2011 on this issue and why anchor currencies are far more resilient than generally believed:
http://www.fullertreacymoney.com/system/data/images/archive/2011-11-10/PostDollar.pdf">https://www.fullertreacymoney.com/system/da...

The first thing to understand about a world currency is that it is an IOU & easiest way to generate enough IOUs for the world is for a large economy to run large current account deficits. This is why currencies from a surplus country will rarely become world currencies 2/n

The risk is that the issuing country will generate too much currency and lose its credibility, but if it doesn& #39;t print enough it tightens global monetary conditions (known as Triffin& #39;s dilemma).Very few countries can run persistent deficits and still maintain some credibility 3/n

For the foreseeable future, only the US is capable of doing this role. Hence the US$ cannot be easily replaced. This is its "exorbitant privilege". Anyone who argues otherwise needs to read the long history of world currencies (see my 2011 article above) 4/n