While a combination of economic, geopolitical and technological forces shaping the international monetary system will erode the US dollar as the dominant international currency, its role will likely persist. — China Daily
The Federal Reserve’s (Fed) aggressive stance on inflation fighting and recent extraordinary steps to stem contagion in regional banks turmoil through increasing the amount of US dollar in its banking system as well as increase the use of US dollar swap lines among central banks to boost the flow of dollars within global financial markets, will likely buttress the dollar’s dominant position.
For decades, many have long predicted that the United States’ unsustainable budget deficit and debt level, the structural changes in the world’s economic and financial order, China’s increasing dominance in the world economy as well as the evolution of financial technology and digital currencies have threatened the dollar’s stature as the world’s reserve currency and have weakened the US dollar’s market share in global cross-borders payment systems.
