Apparently there is this little rainy island off the coast of France, and its currency (big round stones with a hole in it) has 'reserve status'
Go figure ...
Well, says the Wall Street Journal, not for much longer:
- US dollar, euro, yen, yuan and pound are the usual constituents of the International Monetary Fund's reserve currency basket
- if the pound loses its status as a reserve currency, it's not just about Britain's international prestige. It could end up raising the cost of capital for local businesses as investors chose to hold less U.K. assets.
- "As any particular economy's importance in international trade wanes, so does the willingness of the rest of the world to hold their currencies as a store of value," said Frank Gill, S&P senior director for sovereign ratings.