Open Access Article SciPap-1289
The International Monetary System: New Evidence Concerning a Transition to Multipolarity
by Vojtěch Sadil 1,* iD icon and Juraj Sipko 2 iD icon

1 Faculty of Management and Economics, Department of Management and Marketing, Tomas Bata University in Zlín, Mostní 5139, Zlín 760 01, Czechia

2 Institute of Economic Research, SAS, Šancová 56, Bratislava 81105, Slovakia

* Authors to whom correspondence should be addressed.

Abstract: This article focuses on the transition of the international monetary system to a multipolar structure. The international monetary system continuously evolves, reflecting developments in the world economy. The main problem of the current international monetary system is its dependence on one key currency which still remains the US dollar. The authors of this study address the issue of a transition towards a multipolar system by examining currency concentration. The primary objective of this work is to establish whether or not the current international monetary system shows signs of transitioning towards multipolarity. To achieve this, the authors have used tools measuring the level of market concentration. The change of polarity of the international monetary system is analysed with concentration ratios and the Herfindahl-Hirshmann index. The theoretical part focuses on definitions of key terms essential for this study, such as international monetary system, currency polarity, global currency, and currency concentration. For the practical part, data were sourced from the databases of global institutions, namely the International Monetary Fund (IMF), Bank for International Settlements (BIS), Society for Worldwide Interbank Financial Telecommunications (SWIFT) and the European Central Bank (ECB). This part focuses on a period of time between 2001 and 2019, and the results indicate that the current international monetary system shows signs of transitioning towards a multipolar structure. The level of currency concentration of the key reserve currencies dropped slightly, although not enough to cause a qualitative change of the current international monetary system. This study may serve as a base for future research on this topic.

Keywords: International Monetary System, Currency Concentration, Multipolarity, Global Currency, Exchange Rates.

JEL classification:   F01 - Global Outlook,   F33 - International Monetary Arrangements and Institutions

SciPap 2021, 29(2), 1289;

Received: 9 April 2021 / Revised: 2 June 2021 / Accepted: 2 June 2021 / Published: 17 June 2021