Importance The article analyzes the issues of actual use of the US dollar, euro, pound sterling, Japanese yen and Chinese yuan by non-residents. Objectives The paper aims to compare the demand forming factors of the monetary authorities of countries and regions for world currencies with the volume of use in the public sector. Also, the paper aims to determine the diversification prospects of the currency transaction structure of central banks. Methods The research uses the historical method, synthesis, comparative analysis, tabular and graphic methods, absolute and relative indices technique. Results Today's determinants of international demand for world currencies provide the monetary authorities of individual countries and regions with the possibility of wider use of the euro and yuan in their operations. However, the US dollar remains the only currency fulfilling all the functions of the world money. Conclusions The increase in the euro and yuan transactions in the public sector is hampered by the relatively low liquidity of the financial market of the euro zone, the lack of full convertibility of the Chinese national currency. In the event of overcoming these difficulties, diversification of the currency structure of central bank operations is possible in the long-term, based on changes in external network effects.
Keywords: world currency, official sector, currency intervention, monetary reserve, currency rate
Boughton J.M.Silent Revolution: the International Monetary Fund 1979–1989. Washington D.C., International Monetary Fund, 2001, 1111 p. URL: Link
Hartmann P. Currency Competition and Foreign Exchange Markets: The Dollar, the Yen and the Euro. Cambridge, Cambridge University Press, 2008, 212 p.
Kenen P.B. The Role of the Dollar as an International Currency. New York, Group of Thirty, 1983, 40 p.
Krasavina L.N. [The Russian ruble as the world currency: a strategic challenge]. Den'gi i kredit = Money and Credit, 2008, no. 5, pp. 11–18. URL: Link (In Russ.)
Ito T. The Internationalization of the RMB: Opportunities and Pitfalls. The Council on Foreign Relations (CFR), 2011, November, pp. 1–21. URL: Link
Galati G., Wooldridge P. The Euro as a Reserve Currency: A Challenge to the Pre-eminence of the US Dollar? International Journal of Finance & Economics, 2009, vol. 14, iss. 1, pp. 1–23. URL: Link
Anderson H., Habermeier K., Kokenyne A. et al. Revised System for the Classification of Exchange Rate Arrangements. IMF Working Paper, 2009, no. WP/09/211. URL: Link
Kholopov A.V. [Macroeconomic implications of the exchange rate regime]. Vestnik MGIMO Universiteta = Vestnik MGIMO University, 2015, no. 6, pp. 205–215. (In Russ.) URL: Link
Chinn M., Frankel J. Will the Euro Eventually Surpass the Dollar as Leading International Reserve Currency? NBER Working Paper, 2005, no. 11510. URL: Link
Moiseev S.R. [Russian ruble as an international reserve currency]. Voprosy Ekonomiki, 2008, no. 9, pp. 4–21. URL: Link (In Russ.)
Daude C., Levy Yeyati E., Nagengast A. On the Effectiveness of Exchange Rate Interventions in Emerging Markets. CID Working Paper, 2014, no. 288, pp. 1–33. URL: Link
Moiseev S.R. [FX interventions. Motives and instruments of central banks]. Den'gi i kredit = Money and Credit, 2016, no. 3, pp. 12–19. URL: Link (In Russ.)
Pollard P.S. The Creation of the Euro and the Role of the Dollar in International Markets. Federal Reserve Bank of St. Louis Review, 2001, vol. 83, iss. 5, pp. 17–36. URL: Link
Narkevich S.S. [Gold and foreign exchange reserves: history, definition, composition and modern functions]. Voprosy Ekonomiki, 2015, no. 4, pp. 86–105. (In Russ.)
Frankel J. Internationalization of the RMB and Historical Precedents. Journal of Economic Integration, 2012, vol. 27, iss. 3, pp. 329–365. URL: Link
Eichengreen B., Mathieson D. The Currency Composition of Foreign Exchange Reserves: Retrospect and Prospect. IMF Working Paper, 2000, no. 2000/131. URL: Link
Papaioannou E., Portes R., Siourounis G. Optimal Currency Shares in International Reserves: The Impact of the Euro and the Prospects for the Dollar. Journal of the Japanese and International Economies, 2006, vol. 20, iss. 4, pp. 508–547. URL: Link
Ming Feng, Hao Cheng. RMB Exchange Rate Regime Reform and the Trilemma Facing LOEs. China Finance and Economic Review, 2016, no. 4:15. URL: Link
Kudryashova I.V. [Chinese yuan as a world currency: imperatives and realities]. Mirovaya ekonomika i mezhdunarodnye otnosheniya = World Economy and International Relations, 2017, vol. 61, iss. 9, pp. 36–44. (In Russ.) URL: Link