The argument that the erosion of the dollar’s global status could benefit the US is gaining traction in Washington. That move would be a needless act of self-harm.
The argument that the erosion of the dollar’s global status could benefit the US is gaining traction in Washington. That move would be a needless act of self-harm.
China yes but I can’t see other countries picking it up, broadly because they have a closed capital account so the inability to freely move CNY is a massive hurdle. EUR doesn’t have that problem but there aren’t enough EUR around to satisfy demand (you need to run consistent deficits to be a reserve currency).
You’re right though about being a reserve currency. It actually is both a blessing and a curse, but clearly until this point the US thought it more a blessing…