USA is eroding the pillars that They support the dollar as the world reserve currency, especially after the conviction of Donald Trump. This challenge invites the world to look for alternatives, although until now, the Northern country continues to win this battle.
Criticism of the legal system after Trump’s conviction is only part of the actions of the United States that affect its global image. The increasing use of sanctions as a foreign policy tool and the massive accumulation of debt have raised concerns among global investors and financiers. These measures have led to distrust in the stability of the US market.
In conversations with financial executives and experts in Asia and the United States, there is growing concern about the sustainability of these policies. However, The search for alternatives to the dollar has been unsuccessful. In Asia, for example, they are trying to reduce their dependence on the dollar, but they face significant obstacles.
Despite the problems, many continue to see the dollar as a safe haven. A recent survey shows that Central banks plan to increase their dollar reserves due to geopolitical tensions and the need for liquidity. Steve H. Hanke, an economics professor at Johns Hopkins University, points out that the dollar’s strength is due in part to its undisputed safe haven status.
The dollar’s dominance is based on America’s democratic principles, its robust economy, and the strength of its institutions. However, recent attacks on the legal and political system, such as Florida Governor Ron DeSantis’ comments following the Trump verdict, pose challenges to this perception.
A senior financial services executive in New York, traveling in Asia, reported that many clients believe that American financial policy is undermining the Western financial system. The expansion of sanctions and the possible confiscation of Russian assets have weakened confidence in the dollar as a safe haven.
Although the dollar’s position faces increasing challenges due to US policies and growing global mistrust, it remains the most reliable global reserve currency. The search for alternatives has been slow and, in many cases, fruitless, consolidating the dependence on the dollar in the global economic panorama.
