Ex-IMF official argues why crisis left dollar strong

Since the outbreak of the global financial crisis in 2008, one question that has been frequently asked: "Is the dominant position of the dollar being threatened?"

In 2008 and 2009, the financial system in the United States nearly broke down. With no effective policies, plus the new competitor RMB on its road to internationalization, it has been predicted that the dollar as the major reserve currency might be replaced.

But, in The Dollar Trap, whose Chinese edition was published in August, author Eswar S. Prasad argues, to the contrary, he says, the global financial crisis, the disordered international money system and the US government's policies have, in fact, consolidated the position of the dollar.