Managers divided on sanctions effect on US dollar as reserve currency
Over 43% say it will weaken its status, but nearly 40% say it will not have meaningful long-term impact
Reserve managers are divided about how the use of the US dollar as a foreign policy tool could affect its standing as the world’s reserve currency.
Data from the Reserve Benchmarks 2023 shows that out of 53 central banks that addressed the question, 23 (43.4%) said US financial sanctions on third countries will reduce the dollar’s share in reserves portfolios.
However, a similar number, 21 (39.6%), reported these measures will not have any meaningful impact over the long term.
A small number
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