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The Dollar is Slowly Losing its Status as the Primary Reserve Currency

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The Dollar is Slowly Losing its Status as the Primary Reserve Currency

The Dollar is Slowly Losing its Status as the Primary Reserve Currency

The dollar has been a stalwart of international trade over the majority of the last century. Around the time of the formation of the Eurozone, it reached its recent peak at 71.0% of official foreign exchange reserves. Since then, its composition of global reserves has more recently dropped to a more modest 62.9% in 2014.

However, the dollar is slowly losing its status as the world’s undisputed reserve currency. This is not an unusual event as far as history goes. In fact, about every century or so since the Renaissance, the global reserve currency has shifted. Portugal, Spain, The Netherlands, France, and Britain have had dominant currencies at different times.

Today’s infographic shows that the wind is shifting in international trade. With less countries and organizations using the dollar to settle international transactions, it slowly chips away at its hegemony of the dollar. China is at the epicenter and the country is making continued progress in cutting deals outside of the U.S. dollar framework. Deals shown in the graphic are currency flows between countries that have abandoned the dollar in bilateral trade, as well as countries that are considering such measures.

The most recent culmination of these trends is the creation of the Asian Infrastructure Investment Bank (AIIB), a China-led rival to the World Bank and IMF that includes 57 founding countries and $100 billion of capital. The United States is not a member and has actively lobbied its allies to avoid joining due to perceived governance issues.

Other recent deals by China include: a 30-year $400 billion energy alliance with Russia, a second energy deal focusing on natural gas worth $284 billion with Russia, and a deal removing tariffs on 85% of Australian commodity exports to China. Further, China and Russia have agreed to pay each other in domestic currencies in order to bypass the U.S. dollar.

It is not only the Chinese that are starting to question the viability of the dollar. A report in 2010 by the United Nations called for the abandonment of the U.S. dollar as the single reserve currency. The Gulf Cooperation Council has also expressed desires for an independent reserve currency.

In the short term, especially with a crashing Chinese stock market and fledgling Eurozone, the dollar will likely reign supreme. It’s still a stretch for the yuan to make its way into foreign reserve coffers so long as capital controls remain in place and the country’s bond market is not open or transparent to offshore investors. However, Beijing is currently mulling ways to internationalize the yuan, and each step it takes will take China closer to challenging dollar hegemony.

With more bilateral trade transactions bypassing the dollar, and the increasing internationalization of the Chinese financial system, the yuan is eventually going to give the dollar a run for its money.

Original graphic by: Sputnik

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The Top Retailers in the World, by Store Count

Here are the top retailers in the world by physical store presence, illustrating the dominance of convenience and drug store chains.

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This circle graphic shows the retailers with the highest number of locations worldwide.

The Top Retailers in the World, by Store Count

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Which retail chains have the highest global store counts?

Owing to their rapid speed of service in providing the basics to customers, convenience chains stand as the clear leaders. Going further, their smaller footprint allows them to expand their store counts at a greater scale.

This graphic shows the top retailers in the world by store count, based on data from the National Retailers Federation.

Japanese Retailers Dominate the Pack

Below, we show the global retailers with the most physical storefronts in 2023:

RankingRetailerTotal Stores WorldwideIndustryHeadquarters
1Seven & I40,454Convenience Store🇯🇵 Japan
2FamilyMart24,251Convenience Store🇯🇵 Japan
3Lawson21,902Convenience Store🇯🇵 Japan
4CP All16,042Convenience Store🇹🇭 Thailand
5AS Watson16,014Drug Store🇭🇰 Hong Kong
6Schwarz Group14,112Discount Grocery🇩🇪 Germany
7Carrefour14,014Supermarkets🇫🇷 France
8Couche-Tard13,505Convenience Store🇨🇦 Canada
9Aldi13,475Discount Grocery🇩🇪 Germany
10Walgreens Boots Alliance12,961Drug Store🇺🇸 U.S.

Leading by a wide margin is Japan’s Seven & I Holdings, with 40,454 store locations worldwide.

The retail giant includes the 7-Eleven franchise along with Ito-Yokado, its supermarket chain. While the world’s largest convenience chain traces its origins to Dallas, Texas, the remainder of the U.S-based company (27%) was acquired in 2005 in a $1.2 billion deal that took the company fully private. Today, the company operates in 10 markets globally.

Next in line are Japan’s FamilyMart and Lawson, each boasting over 20,000 locations. For perspective, Walmart, America’s largest retail company by revenues, operates 10,569 locations globally.

In Europe, Germany’s discount grocery chain Schwarz takes the lead, due to its extensive network of stores. Operating across 30 countries and with over 500,000 employees, the no-frills chain stands as a powerhouse. France’s supermarket giant, Carrefour, follows closely behind.

Ranking in eighth is Canadian retailer, Couche-Tard, with stores largely concentrated in North America and Europe. Since 2004, the company has made over 60 acquisitions, including 2,200 gas stations from French oil company TotalEnergies in 2023. The company is known for its Circle K brand, which operates in 24 countries globally.

Closing off the list is Walgreens Boots Alliance, the only American retailer in the rankings. The company owns the ubiquitous UK-based Boots brand, which was founded in 1849 in Nottingham. Yet as profits margins face increasing strains, it is looking to sell the subsidiary and instead focus more heavily on its U.S. pharmacy and healthcare businesses. With a presence in 13 countries, the pharmacy chain operates 12,961 stores worldwide.

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