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The Federal Reserve has made no decision on issuing a central bank digital currency (CBDC) and would only proceed with the issuance of a CBDC with an authorizing law.

"The USD is unlikely to lose its global reserve status anytime soon ? new currency unions should look to technology or green baskets, rather than gold- or carbon-based ones," said Bob Savage, head of markets, strategy and insights at Mellon wrote.

Currency and Transaction Exposure For instance, investors in automaker Toyota Motor Corp. (TM) have currency exposure because the company sells cars in countries outside of Japan. Toyota sells cars in the United States for U.S. dollars, in France for euros, and in Britain for pounds.

The short answer is yes. There has been increasing talk of the BRICS nations (Brazil, Russia, India, China and South Africa) developing a new currency that will rival the US dollar as the global reserve standard.

To reiterate, it's rather unlikely that the dollar would simply stop being the world's reserve currency overnight. That said, there is a distinct possibility that the dollar's overwhelming role in international trade and commerce could gradually diminish in coming years.

The dollar has been the world's principal reserve currency since the end of World War II and is the most widely used currency for international trade. High global demand for dollars allows the United States to borrow money at a lower cost and use currency as a tool of diplomacy, but that comes with drawbacks.

When there is a lack of confidence in a country's currency, the relevant currency loses its value over time. In other words, it means. Its total volume of Imports would be larger than its total volume of Exports. Its government debts would be larger than the government revenue(any percentage from GDP).