Remarks by Under Secretary for International Affairs Jay Shambaugh at the Third Conference on the International Roles of the U.S. Dollar hosted by the Federal Reserve Board and the Federal Reserve Bank of New York

Thank you, Michelle, and thanks to Linda, Ricardo, and Fabiola for the chance to be here.Before getting at how new payment systems impact the role of the dollar, I want to start with the role of the dollar and how we at Treasury see it.People and institutions demand the dollar, around the world, because the dollar fulfills a diverse and important set of needs. It is a safe, stable, and liquid instrument, making it an effective store of value. The borrowing cost of dollars is a reliable benchmark, or risk-free rate. The dollar facilitates international transactions in a highly liquid currency, which all else equal, reduces transaction costs.Because of these features, the dollar’s global usage far exceeds the U.S. share of global economic and financial activity.