The Dollar’s pre-eminence may be in decline, but it’s far from fragile!

These days, top policymakers and many economists across the world appear to think the dollar’s days might be numbered. It would appear that China’s economic rise and the ascent of the Euro and Renminbi has caused market actors and analyst to expect a less dominant role for the dollar. Even so, the dominant currency paradigm suggests that the “dollar’s” exorbitant privileges, what some have termed countercyclical and event-averse characteristics have waned somewhat. So, is the dollar set to lose its global status as the currency of preference?