Discomfort with the dollar hasn't gotten much beyond grumbling

Interest in yuan as reserve currency has faded despite growing trade use

Henny Sender

June 7, 2024 05:05 JST

For a brief moment, it appeared that the yuan might challenge the "exorbitant privilege" that the U.S. enjoys thanks to the dollar's status as the world's primary reserve currency. © Reuters

Henny Sender is the founder and managing partner of Apsara Advisory, a strategic consultancy for financial services companies. She was previously a managing director at investment company BlackRock.

There are many reasons why central bankers and financial players would love to see a world in which the dollar is not the world's only major reserve currency. That is especially the case in Asian emerging markets, most of which have seen global capital flow out to the U.S. in recent years even though prospects for economic growth in the region remain relatively bright.