Central banks and investors do not buy currencies per se but assets, so the euro is not a viable reserve alternative because the eurozone has no single safe instrument equivalent to the U.S. Treasury market—only fragmented German, Greek, and Spanish bonds that are very different—and China's non-convertible currency cannot serve either, which sustains the dollar's reserve role until a credible alternative crystallizes.
causalpending
Speaker
Carmen ReinhartEvidence Quote
“we need for that alternative to crystallize itself”
Created: 6/15/2026, 9:20:19 AM
My Notes
Loading notes...