A Transition to a Multipolar Monetary Order? Trends in Currency Concentration and Internationalization of the US Dollar, the Euro, and the Renminbi

Keywords: International Monetary System, Multipolarity, COVID-19, Fuzzy-logic model, Internationalization, Currency Concentration, Reserve Currencies

Abstract

The main aim of this study is to verify whether the current international monetary system shows a transposition into a multipolar monetary arrangement. The study is aimed at analysing the prospects of three key currencies (the American dollar, the Euro, the Chinese renminbi) in the context of their transposition to a multipolar monetary system. For these currencies, the values of monetary concentration and those of the potential of monetary internationalization were analysed. We used a new approach for assessing the measurement potential of currency internationalization: the fuzzy-logic model. This approach includes economic and political factors. The prospects of the selected currencies are examined in this study in the context of the great economic lockdown. The conclusions confirm the existence of a trend of transposition into a multipolar monetary arrangement.

Author Biographies

Vojtěch Sadil, Tomas Bata University in Zlín, Czech Republic, sadil@utb.cz

Vojtech Sadil (correspondent author) is a PhD candidate in Finance at the Faculty of Management and Economics, Tomas Bata University in Zlín. He specialises in international monetary system affairs, international finance and capital markets. He earned his master’s degree in Finance. In his PhD thesis he deals with the changing architecture of the current international monetary system, especially focusing on the changing role of reserve currencies. He works as assistant lecturer at Tomas Bata University. Furthermore, he works as an external Fintech analyst.

Juraj Sipko, Institute of Economic Research of the Slovak Academy of Sciences, Slovakia, juraj.sipko@savba.sk

Juraj Sipko is Director of the Institute of Economic Research of the Slovak Academy of Sciences (SAS). He has worked as an advisor to the governors of the National Bank of Slovakia. For six years, he advised the executive directors of both the International Monetary Fund and the World Bank. He earned his professor degree at Tomas Bata University in Zlín. He is a member of the European Economic and Social Committee. In his research he specialises in business, finance, entrepreneurship, regional development and exchange rate affairs.

Section
Research Articles