This status (along with the end of the gold standard) gave the Federal Reserve Bank the power to print cash with wild abandon without facing immediate inflationary consequences. As long as dollars are held overseas by foreign governments, banks and corporations, inflation in the US can be mitigated despite quantitative easing. If the dollar loses reserve status and the trillions of dollars stored in foreign markets flood back into the US economy, an inflationary disaster would result well beyond what America is already dealing with today. https://www.zerohedge.com/economics/brics-summit-puts-focus-dethroning-us-dollar-putin-unveils-brics-banknote