Published Mark Smith-HalvorsenThe dollar's status as the global reserve currency offers only modest practical benefit to the US economy, a report from McKinsey Global Institute has claimed.According to the research group, the net benefit to the US in a 'normal' year such as 2007-08 is between $40 billion and $70 billion.However, the group claimed that in the year to June 2009, the benefits from the currency's reserve status fell by as much as $25 billion, primarily due to the appreciation of the dollar during haven-buying activity.Therefore, the institute claimed, there is little practical basis to the belief that the US economy enjoys an "exorbitant privilege" from the dollar's reserve status. This was a charge originally levelled at the US by French finance minister Valery Giscard d'Estaing in the 1960s.Reflecting on the findings, the group forecast: "MGI's analysis suggests that the United States may not be inclined to tighten its fiscal and monetary policy to safeguard its dominant reserve currency position, even if it perceives that status to be at genuine risk."For more information on foreign exchange treasury services and risk management, visit our Corporate FX site