https://www.youtube.com/watch?v=vYJri1eNRyc&t=949s
This will be old news for some (gold bugs and bit coiners no doubt), but above is a half hour video that nicely lays out the thesis that there are 7 stages to every reserve currency, and we're currently in stage 5 and heading for stage 6. It neatly explains why present day gold, shares, property and bitcoin are all on the rise together (stage 6 loss of confidence and search for alternatives). It also gives some hints as to what the future may hold over the next few decades. Spoiler alert, no one looks ready to take over as reserve currency, the global economy likely bifurcates into USD in the americas, Euro in Europe and the Chinese Yuan in Asia, with gold spanning the gaps (or digital gold I guess). Alternate stores of wealth and productive assets are a better place to be than reserve currency cash or bonds (preaching to the choir I suspect).
The 7 Stages of Reserve Currencys:
Stage 1 Military dominance and trade route control,
Stage 2 Massive trade surplus,
Stage 3 Reserve status formalised,
Stage 4 Deficit spending and living beyond means
Stage 5 Currency debasement and money printing
(we are apparently here)
Stage 6 Loss of confidence and search of alternatives
Stage 7 replacement and collapse.
The timeline covered:
Portuguese Real - 80 years (1450-1530)
Dutch Guilder - 80 years (1640-1720)
British Pound - 105 years (1815-1920)
US Dollar - 81 years (1944-2025.
That is a great article @Lewis and I agree with your thoughts @Clio - it could certainly be argued we are at about 6.1 or so.
While there is a growing trend in some countries away from the USD (which is one of the reasons gold is doing so well lately, given the Chinese plans to establish a gold-backed system or back their currency via gold), and as you touch on, some trade is starting to be done directly in Yuan, the USD is still extensively used. It will be a period of time yet before that changes, but directionally the clock has ticked past 6 for sure.
Australia, and most other countries, certainly does hold USD in terms of cash and bonds. Why? Well, while there is some trend away from the USD, it still comprises the vast majority of global trade, so holding it just makes sense... until it does not! The day will come when it all crashes down, but for now, the USD is still the big bad boy in the schoolyard.
The total amount held by the Australian government looks a bit like the below. Note: This is from Gemini and I have not checked the quantum on the source pages it listed, so take this as a guide only.
