Having the world reserve currency plays a key role in a country becoming the richest and powerful empire.īefore the US empire and US dollar held world reserve status, the empires that held the previous reserve currencies were the British empire and pound in the 1800s, and before that, it was the Dutch empire and guilder in the 1600s. In 1944, the new world monetary system was laid out in the Bretton Woods agreement and established the dollar as the world’s leading reserve currency. The current world order, commonly called the American world order, formed after the allied victory in World War 2 when the US emerged as the dominant world power. This phenomenon has occurred throughout history, with the average cycle lasting about 250 years for great empires, with the same factors eventually leading to their fall. The Changing World Order refers to the shift in balance of power between nations, where one empire falls and a new empire takes over.
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