01838cas a2200241 a 4500 AALejournalIMF009059 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451864137 1018-5941 BD-DhAAL BD-DhAAL Lim, Ewe-Ghee. The Euro's Challenge to the Dollar : Different Views from Economists and Evidence from COFER (Currency Composition of Foreign Exchange Reserves) and Other Data / Ewe-Ghee Lim. Washington, D.C. : International Monetary Fund, 2006. 1 online resource (40 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines opposing views on the euro's challenge to the dollar as an international currency. One view emphasizes Europe's large economy and diversification effects as undergirding a vigorous challenge. The other emphasizes "network externalities," particularly undergirding continued dollar dominance. The data to date support the second view but also show the euro has significantly overtaken the legacy currencies as a reserve currency. Generally, large economic size alone is insufficient to challenge the network externalities supporting vehicle currencies, but scope exists for the euro to advance as an international store of value. The paper discusses the euro's medium-term prospects. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2006/153 Full text available on IMF http://elibrary.imf.org/view/journals/001/2006/153/001.2006.issue-153-en.xml IMF e-Library