De-Dollarization and the Rise of Special Drawing Rights (SDRs)

The chapter discusses the concept of an international currency called special drawing rights (SDRs) and how they are used to settle trade imbalances between nations. It explores the process of de-dollarization in international trade and the shift towards using local currencies for cross-border transactions. The chapter also highlights the decline of the US dollar in foreign exchange reserves held by central banks and the search for alternatives to the dollar.