Challenges to the US Dollar's Reserve Currency Status

Reported about 1 year ago

The United States is challenging the world to find an alternative to the dollar as the reserve currency, with recent actions like questioning the rule of law post-Donald Trump's conviction and increasing sanctions. Despite concerns about U.S. hubris and efforts in Asia to diversify away from the dollar, no credible alternative has emerged. The dollar's dominance relies on the U.S.' democratic principles, economic size, market depth, and legal institutions, but recent attacks on the legal system and sanctions are testing its global appeal. The U.S. faces criticisms for potential threats to institutions and an expanding sanctions regime, raising doubts about the dollar's safe haven status.

Source: YAHOO

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