The system we now have is that the US dollar is the world’s reserve currency by virtue of the dominant size of the US economy, its share in global trade and the preponderant use of dollar in foreign trade and foreign exchange transactions.
Also see: J. Cruz Lopez, R. Mendes and H. Vikstedt, “The Market for Collateral: The Potential Impact of Financial Regulation,” Bank of Canada Financial System Review (June 2013): 45–52. 9  Common global developments play a central role in determining longer-run neutral rates in all countries, but country-specific differences in structural factors do introduce some heterogeneity.