Chartbook 475: After the dollar as reserve currency, the (profit) dollar as a “portfolio currency”.
“The dollar is the world’s reserve currency.
After the dollar's reign as the world's reserve currency, it is increasingly being referred to as a "portfolio" or "funding" currency. This shift is due to a deceleration in official reserve accumulation, which has been a unique configuration since the early 2000s. According to a graph by Karl Schamotta, the decade-long surge in US Treasury issuance, which was previously an asset in reserve managers' portfolios, has since shifted to funding corporate America rather than the US Government. As a result, this new configuration highlights the evolving role of the dollar in global finance.
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