📄 Abstract
Reserve currencies have historically underpinned the global economic and financial architecture, facilitating international trade, capital flows, and monetary stability. Yet, history demonstrates that no reserve currency has sustained its dominance indefinitely. Each has followed a broadly similar trajectory—rising with the economic and political power of the issuing nation, maturing through widespread acceptance and deep financial integration, and eventually declining as structural weaknesses emerge. This paper undertakes a comprehensive historical and analytical examination of the life cycle of reserve currencies and applies this framework to the contemporary position of the United States dollar. By drawing upon historical precedents, theories of monetary hegemony, and current macroeconomic trends such as rising public debt, persistent fiscal and trade deficits, and increasing efforts toward dedollarisation, the study argues that the U.S. dollar exhibits several features associated with the later stages of the reserve currency cycle. However, the paper also contends that reserve currency decline is typically gradual rather than abrupt, shaped by confidence, institutional strength, and the absence of credible alternatives. The study contributes to the literature on global monetary transitions and offers insights for policymakers and scholars concerned with the future of the international monetary system
🏷️ Keywords
📚 How to Cite:
Dr. Archana.H , THE PATTERN THAT DESTROYS EVERY RESERVE CURRENCY: IMPLICATIONS FOR THE U.S. DOLLAR , Volume 13 , Issue 9, September 2026, EPRA International Journal of Environmental Economics, Commerce and Educational Management(ECEM) , Pages: 17 - 20 ,