What Countries are Now Using as Their World Reserve Currency? The announcement made by the IMF coincides with a period that many countries are witnessing their economies deteriorating and have been struggling to maintain their financial stability. In fact, the International Monetary Fund (IMF) recently announced that it would no longer use its US Dollar as its primary benchmark for assessing countries' economic conditions. The world is shifting away from the US Dollar as their world reserve currency. The US Dollar is by far the most frequently used currency in international commerce, and it is also the most liquid. The US Dollar has been the world's reserve currency since 1945. Why are countries moving away of their dependence on the US Dollar as their world Reserve Currency Other countries such as the US are using USD as their primary currency for international transactions. This is because it is easier to track and control these transactions. But, due to the growing adoption of digital currency, countries are now opting for different currencies for their international trade.Ĭountries such as Japan along with China have utilized digital currencies for international trade. The past was when international commerce was conducted primarily in one currency. How Countries Are Using Different Currencies for International Trade The US Dollar's status has been impacted by trade agreements and globalization such as NAFTA, GATT and TPP. There are numerous other currencies that are also considered to be reserves, such as the Euro and Japanese Yen. The US dollar is not the only reserve currency in the world. The US dollar has been the world's most frequently used currency since it became the first reserve currency in the world in 1879. World reserve currency (WRC) is an form of currency which is the main currency in international transactions. What is a World Reserve Currency, Why is it important and how does the US Dollar Differ from Other Currencies?
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