Archive · 9 Aug 2026
Will the US dollar's dominance fade? New book examines future
Countries buy and sell things with each other every day.
To make that easier, the world usually agrees on one special money to use for big deals.
For a very long time, that special money has been the United States dollar.
A professor named Barry Eichengreen wrote a book called 'Money Beyond Borders' to ask if the dollar will always be the special money.
He looked far back in history at old coins, like the ones from Ancient Greece and Rome, that were once the world's most important money.
Every one of those coins eventually lost its top spot.
So the professor says no money stays on top forever.
But he also thinks no other money today is ready to take the dollar's place.
The euro and China's renminbi are the closest rivals, but they are far behind, so the dollar will probably stay on top for a long time.
Barry Eichengreen's new book 'Money Beyond Borders' examines whether the US dollar will eventually lose its dominant role in international finance and trade.
Eichengreen concludes 'international currency status is not forever,' but no other currency is currently positioned to fill the dollar's shoes.
Around 90% of foreign exchange transactions involve the US dollar, and about 40% of global trade is invoiced in dollars.
The dollar's 'exorbitant privilege' allows the US government and companies to borrow at lower interest rates while keeping the dollar strong.
The book traces past dominant currencies, from the Athenian 'owls' to the British pound, and finds the euro and Chinese renminbi still lag behind the dollar.
- Who
- Barry Eichengreen, professor of economics and political science at the University of California and author of 'Money Beyond Borders'.
- What
- A book review exploring whether the US dollar will lose its dominant role in international finance and trade, concluding no other currency is positioned to replace it.
- When
- 2026 - the book is being reviewed and has been called one of the best economics books of 2026 so far.
- Where
- The book spans the global financial system and currency history; the review was written at the University of Canberra, Australia, and republished by The Conversation.
- Why
- Russia's 2022 invasion of Ukraine led to Russia being locked out of the global financial system, triggering a worldwide rethink of dollar dependence and questions about how long dollar dominance will last.
Dollar dominance will fade
Dollar dominance will last
Long-term fate of the US dollar
Dollar dominance will fade
History shows that 'international currency status is not forever' - every dominant currency, from the Athenian 'owls' to the British pound, eventually lost its leading role.
Dollar dominance will last
No other currency is positioned to fill the dollar's shoes, and for some time the US dollar may remain, in Eichengreen's words, 'the cleanest dirty shirt in the pile.'
Challengers to the dollar
Dollar dominance will fade
China has already overtaken the US as the world's largest economy by some measures, and the experience of Russia has prompted many countries to rethink dollar dependence.
Dollar dominance will last
The euro lags well behind because its bond market is split between countries, and China's capital controls and not-fully-independent central bank undermine confidence in the renminbi.
- Book
- Money Beyond Borders
- Author
- Barry Eichengreen
- Author's role
- Professor of economics and political science at the University of California
- US dollar share of FX transactions
- Around 90%
- US dollar share of global trade invoicing
- About 40%
- Second most-used international currency
- Euro
- Notable praise
- Martin Wolf called it one of the best economics books of 2026 so far
- Historical currencies covered
- Athenian 'owls', Roman denarius, Byzantine gold solidus, Florentine florin, Spanish real, Dutch guilder, British pound sterling