The two sound very similar, almost identical:
- The dollar as a world reserve currency
- The dollar as a world reserve asset
But I'd venture there are important distinctions. As an asset, the dollar is important for capital adequacy ratios. For the currency dimension, this seems to be more for cross-border/settlement side. Yet I think I'm just scratching the surface, and I've seen the two used almost interchangeably. I'd like to explore what the actual, textbook, uber-orthodox comparison should look like, to see where the most meaningful differences lie.
What, if anything, should we hold to be different when discussing a world reserve 'currency' versus a world reserve 'asset'?