By Eric Peters, CIO of One River Asset Management
“Shifts in the global currency landscape are not unprecedented in monetary history,” said ECB Chief Lagarde. “There have been previous episodes where the world’s leading reserve currency issuer has taken steps that have called that leadership into question, without ultimately jeopardizing it. For example, the US dollar took over from the pound sterling as the world’s leading reserve currency in the mid-1920s, with its share in foreign exchange reserves rising to 64% by 1931. But this leading position did not stop the US taking measures to unilaterally change the international monetary order.”
