<P> The top reserve currency is generally selected by the banking community for the strength and stability of the economy in which it is used . Thus , as a currency becomes less stable , or its economy becomes less dominant , bankers may over time abandon it for a currency issued by a larger or more stable economy . This can take a relatively long time , as recognition is important in determining a reserve currency . For example , it took many years after the United States overtook the United Kingdom as the world 's largest economy before the dollar overtook the pound sterling as the dominant global reserve currency . In 1944 , when the US dollar was chosen as the world reference currency at Bretton Woods , it was only the second currency in global reserves . </P>
<P> The top reserve currency is generally selected by the banking community for the strength and stability of the economy in which it is used . Thus , as a currency becomes less stable , or its economy becomes less dominant , bankers may over time abandon it for a currency issued by a larger or more stable economy . This can take a relatively long time , as recognition is important in determining a reserve currency . For example , it took many years after the United States overtook the United Kingdom as the world 's largest economy before the dollar overtook the pound sterling as the dominant global reserve currency . In 1944 , when the US dollar was chosen as the world reference currency at Bretton Woods , it was only the second currency in global reserves . </P>
when did the dollar become the reserve currency
when did the dollar become the reserve currency
1944
1944