To challenge a dominant global currency, the economy behind an emerging competitor would need to be large, diverse and institutionally and financially developed, a new paper from the Banque de France says.
Researchers Kai Arvai and Nuno Coimbra argue that to maintain the dominance of a global currency, the economy backing it has to grow at a pace at least on a par with the global average, otherwise it may become susceptible to a challenger.
The researchers built a model of two open-economy
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