World’s currency reserves – level 1
Since 1944, the US dollar is the main global reserve currency. It means that most countries hold their currency reserves in dollars.
As a result, all countries want dollars. The value of the dollar is high. Import is cheaper. For the US, it means that the country imports more than it exports. But the situation is changing. In 2001, 73% of the world’s reserves are in US dollars. Nowadays, it is only 58%. This decline gets faster when Russia attacks Ukraine. The US freezes Russia’s dollar assets.
Experts believe that no currency will replace the dollar soon. But the Chinese yuan and Japanese yen are getting stronger. Experts say that it is important to watch the situation closely.
You can watch the original video in the Level 3 section.
What impact could a decline in the use of the US dollar have on the US economy?
LEARN 3000 WORDS with NEWS IN LEVELS
News in Levels is designed to teach you 3000 words in English. Please follow the instructions
How to improve your English with News in Levels:
- Do the test at Test Languages.
- Go to your level. Go to Level 1 if you know 1-1000 words. Go to Level 2 if you know 1000-2000 words. Go to Level 3 if you know 2000-3000 words.
- Read two news articles every day.
- Read the news articles from the day before and check if you remember all new words.
- Listen to the news from today and read the text at the same time.
- Listen to the news from today without reading the text.
- Answer the question under today’s news and write the answer in the comments.