World’s currency reserves – level 3

02-05-2023 15:00

Since the Bretton Woods Conference in 1944, the US dollar’s been the world’s reserve currency.

Now, this status dictates that the majority of global currency reserves are held in dollars. The upside of this is that for decades, there’s been a steady global demand for dollars that tends to push the value above what would be in a neutral system. This makes imports less expensive and has contributed to the US becoming an importer nation. However, something appears to be changing. In 2001, 73% of the world’s reserves were held in US dollars, compared to 58% today. This trend has accelerated since Russia invaded Ukraine because the US decided to freeze Russia’s dollar assets.

Although the Chinese yuan has gained in status in recent years, it still accounts for only 2.7% of the world’s reserves. The Japanese yen has gone from 3.5% in 2014 to a current level of 5.5%. The rest of the gains that counterbalanced the dollar’s losses have been shared with many of the world’s currencies. Most analysts believe that the lack of a single suitable replacement is probably enough to ensure the dollar’s dominance will remain, but this is definitely a trend worth watching.

Difficult words: dictate (to influence or control), counterbalance (to have an equal but opposite effect on something in a positive way), dominance (a leading position).

You can watch the video news lower on this page.

What potential impact could the decrease in global holdings of US dollar reserves have?


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: 


  1. Do the test at Test Languages.
  2. 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.


  1. Read two news articles every day.
  2. Read the news articles from the day before and check if you remember all new words.


  1. Listen to the news from today and read the text at the same time.
  2. Listen to the news from today without reading the text.


  1. Answer the question under today’s news and write the answer in the comments.


  1. Choose one person from the Skype section.
  2. Talk with this person. You can answer questions from Speak in Levels.


Stock images by Depositphotos