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March 15, 2024
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July 2, 2024
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Abstract

The understanding of the behavioral economics of how the US$ has been performing as an international reserve currency since 1945 seems to face a serious threat posed by the BRICS coalition nowadays. The study aimed to assess the long-term stability of the US dollar as an international reserve currency in light of the emerging challenge from the BRICS coalition. The research used ARDL and ECM analysis to address two main questions. First, the study confirmed that the US dollar’s long-term equilibrium as a reserve currency is stable. Second, it found that the US economic and monetary infrastructure appeared more resilient than that of the BRICS countries. This suggests that a shift away from the US dollar as a world reserve currency is not likely in the near future. The study also raised the need to consider designing a better monetary system for the modern world.

Keywords

US Dollar hegemony BRICS ARDL and ECM analysis world reserve currency economic and monetary infrastructure

Article Details

Author Biographies

Eric J. Nasution, Adventist International Institute of Advanced Studies, Philippines

Eric J. Nasution is a Professor Emeritus at the Adventist International Institute of Advanced Studies (AIIAS) and a partner at Dwi-Nas Financial Advisory in the Philippines. He holds a PhD in Commerce (finance & banking). His research interests include business finance and economics

Parhimpunan Simatupang, Universitas Prasetiya Mulya, Indonesia

Parhimpunan Simatupang is a Senior Lecturer at Universitas Prasetiya Mulya, Indonesia. He holds a PhD in Hospitality Management, a PhD in Leadership Theology, an MBA in General Management, and a Bachelor's in Management. His research interests include tourism and economics.

How to Cite
Nasution, E. J., & Simatupang, P. (2024). Will the US Dollar Hegemony as the World Reserve Currency Be Replaced? An Exploratory Study. Pan-African Journal of Education and Social Sciences, 5(1), 87–102. https://doi.org/10.56893/pajes2024v05i01.07
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