8. The dollar is facing a pushback from allies and adversaries in the global markets. A way to get a glimpse of this pushback is to review the graphs published in the January 18th 2020 issue of The Economist, provided on the next page.

Review them carefully; then answer the following questions:

i)How do the graphs capture the pushback against the greenback? Give specific examples.

ii) What is the likely cause for this pushback as reflected in the graphs? Pinpoint the graph that provides the possible cause.

Pushback against the greenback US dollar share, % 100 Cross-border lending Share of allocated reserves, % I US dollar Euro I Pound sterling Chinese yuan 0 25 50 80 Japanese yen Other 75 100 FX reserves 60 2000 40 International debt 20 2007 SWIFT payments 0 Q3 2019 1977 90 2000 10 19 US dollar usage in Russia, $bn 2013 2019 New additions to the US sanctions list 1,500 0 100 200 300 400 500 Annual g/st exports Foreign debt Banks int'l assets 1,000 Non-Fin int'l assetst Deposits with local banks Annual g/st imports 500 Central bank int'l assets Local bank loans Finance ministry savings Daily FX market turnover 2001 05 10 15 19 Sources: Oxford Economics; Haver *IMF started separately identifying reserve holdings in yuan in 2016 Analytics; ING; IMF; Gibson Dunn Goods and services #Non-equity Sindividuals, companies and other entities Llull 0 Pushback against the greenback US dollar share, % 100 Cross-border lending Share of allocated reserves, % I US dollar Euro I Pound sterling Chinese yuan 0 25 50 80 Japanese yen Other 75 100 FX reserves 60 2000 40 International debt 20 2007 SWIFT payments 0 Q3 2019 1977 90 2000 10 19 US dollar usage in Russia, $bn 2013 2019 New additions to the US sanctions list 1,500 0 100 200 300 400 500 Annual g/st exports Foreign debt Banks int'l assets 1,000 Non-Fin int'l assetst Deposits with local banks Annual g/st imports 500 Central bank int'l assets Local bank loans Finance ministry savings Daily FX market turnover 2001 05 10 15 19 Sources: Oxford Economics; Haver *IMF started separately identifying reserve holdings in yuan in 2016 Analytics; ING; IMF; Gibson Dunn Goods and services #Non-equity Sindividuals, companies and other entities Llull 0