The Rise of the Dollar and Fall of the Euro as International Currencies

摘要

By the early or mid-2000s, the dollar and euro both played significant roles as international currencies. Both were commonly used to denominate internationally traded corporate bonds and syndicated bank loans. Both commonly appeared on shipping manifests to denominate invoice prices for international trades in goods and services. Both were among the currencies traded with greatest volume on foreign exchange markets, preferred as reserves by central banks, and targeted by managed exchange rate regimes. We document that since then, the dollar's use has grown relative to the euro. The timing and magnitude of the shift varies, but the pattern is at least qualitatively evident when studying all five of these roles of international currencies.