Future dominance of US dollar in question – Reuters

On Monday, US Treasury Secretary Scott Bessent confirmed the government's commitment to adhere to the country's “strong dollar” policy. As noted in Reuters, such a strategy has backed the exceptional role of the US currency in the global economy for many years.

By the current moment, the dollar is still dominant by all indicators. The dollar holdings of central banks have remained virtually unchanged over the past decade, and private investors have significantly increased their investments in the asset.

But Stephen B. Kamin of the American Enterprise Institute and Mark Sobel, chairman of the Official Monetary and Financial Institutions Forum, both claim that the dollar's future dominance is in doubt. Its stability depends on three factors: preserving the fundamentals of the currency's global role, maintaining confidence in the United States as a reliable partner, and avoiding misuse of financial sanctions. Now, all three of those factors are questionable, largely due to the influence of the Trump administration policies and the previous government's actions, the experts say.

As they believe, if the current US policy is maintained, the value of the dollar will fluctuate and its dominant position as the world's reserve currency may be shaken.