One reason for such diverse approaches is that the benefits and costs of international currency status differ from country to country and are difficult to measure. 18 Take the benefits first. One benefit is seigniorage, i.e. interest-free loans to the issuing central bank from non-residents who hold the international currency. In the current environment of low interest rates, this benefit is arguably very limited.
But international currency status also creates efficiency gains in financial intermediation and lowers transaction costs. For instance, size and liquidity effects lead to the emergence of new financial market segments denominated in the international currency.