NEW YORK — The dollar is at risk of being surpassed by the euro as the world’s leading reserve currency in the next seven years, according to a study published by the National Bureau of Economic Research.
Realized and forecast increases in the number of countries using the euro, and the growth in the economies that have adopted it since 1999, make the 15-nation currency a stronger competitor than the German deutsche mark and Japanese yen were in the 1980s, economists Menzie Chinn, of the University of Wisconsin-Madison, and Jeffrey Frankel wrote in a working paper for the Cambridge, Massachusetts-based NBER.