Over 85% of all foreign exchange (FX) transactions involve the US dollar. I show that the US dollar dominates FX … trading volume because of strategic avoidance of price impact. To demonstrate this, I leverage the fact that non-dollar … currency pairs can be traded indirectly by using the US dollar as an intermediate vehicle currency. I present a model of FX …

We document a decline in the dollar share of international reserves since the turn of the century. This decline …, or of changes in coverage of surveys of reserve composition. Strikingly, the decline in the dollar's share has not been … that, along with the dollar, have historically comprised the IMF's Special Drawing Rights. Rather, the shift out of dollars …

economic actors' recent difficulties in using the dollar. The American financial sanctions against Chinese trade partners, the … and banks to use the renminbi as an alternative to the dollar. In addition to contributing to a broader understanding of …

alternatives to a unipolar dollar-based system. It considers (1) measures of international currency use; (2) potential challengers … to the dollar; (3) network externalities; and (4) the plausibility of gold and digital currencies, as alternatives to … regular currencies. On the one hand, network externalities operate in favor of the status quo: the dollar as the single …