Who will control the new world reserve currency? The USA is losing this status. Will it be the Euro? The euro is on the rise as the reserve currency of central banks. People talk about the Chinese Yuan. This is for good reason. Thanks to artificial low-interest rates and the unlimited money printing people have lost confidence in the US Dollar.
There is an alternative no one talks about. There is an alternative that is already in place. The FED has no alternatives. There are not methods and alternatives for them.
So will the so-called special drawing rights from the IMF be the new world reserve currency? They are already in place. so it could be simply be expanded. It is respected by all central banks around the world. Very important for any new world reserve currency.
To assess the capacity of SDR as the world reserve currency we need to know what it is. Special drawing rights are a form of reserves that central banks use. It is used in dealings between the central banks.
When the final piece of the Gold standard was blow up by FDR Gold was no longer used by the IMF as a reserve. So they are using a pre-set mix of currencies.
Below you see the current SDR valuations of the IMF.
The set of reserves is being changed every 5 years.
As you see is the US Dollar the biggest currency. wit it the USA is having the most voting rights in the IMF.
At the same time are we seeing china on the rise? China is also actively pushing for Special Drawing Rights. Not to use it for internal use. They will seek SDR as the perfect method to obtain global control over international currency usage.
I highly doubt that SDR will become the new international world currency. when we look at the global reserve currency it is not suitable for it. So if I need to pick the new global reserve currency I would go for Gold. It has worked for centuries and it will do so in the next centuries.