The United States is challenging the world’s dependence on the dollar as the reserve currency while facing criticism of the legal system after Donald Trump’s conviction. The use of sanctions, increasing debt, and threats to the rule of law are raising concerns over US hegemony.
Despite ongoing uncertainty, alternatives to the dollar have not gained traction due to geopolitical tensions and market volatility. Central banks plan to increase their dollar holdings, citing its safe-haven status.
The belief in US democracy underpins the dollar’s dominance, although recent attacks on the legal system and potential threats to institutions like the Federal Reserve could weaken its credibility. The US faces scrutiny over a growing use of sanctions and concerns about financial policy undermining the dollar’s stability.
While some question the US legal system’s independence, many investors still view the US as a preferred financial hub. The future of the dollar as the global reserve currency remains uncertain amidst changing geopolitical dynamics.
Paritosh Bansal oversees the work of more than 100 journalists across the globe who write about finance and markets
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