US Dollar's Dominance May Slowly Fade

The US dollar's dominance in international trade and finance may slowly fade according to historical patterns. This is the argument of economist Barry Eichengreen in his book Money Beyond Borders. Eichengreen notes that since the Second World War, the US dollar has been the dominant currency, but other currencies have also played a significant role throughout history.

Traced back to Ancient Greece, coins were used for international transactions. The Athenian 'owls' had consistent weight, fineness and design, which helped build confidence in their value. Athens was a commercial hub and led the Delian League of Greek city-states.

The Roman denarius was another example of an internationally accepted currency that reached its maximum extent around 117 CE. The Byzantine gold solidus was used from Britain to India by the fifth century CE, while the Florentine gold florin flourished during the Renaissance in Europe.