Markets Insider on Nostr: The biggest threat to the dollar isn't other countries but America's own dysfunction, ...

The biggest threat to the dollar isn't other countries but America's own dysfunction, think tank experts say
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Foreign de-dollarization efforts are unlikely to spur the greenback's demise. Instead, internal dysfunction could cut into the dollar's dominance, two think tank experts wrote in the FT. Rising American dysfunction — be it political or fiscal — is the real threat to the greenback's international role. De-dollarization is a trend that's gained momentum in recent years, with the goal being to decrease the world's dependence on the greenback. Possible competitors to the dollar, such as the euro and China's yuan, do not share the dollar's massive advantages that make it so popular. A number of factors could amplify the risk of de-dollarization, including US spending and debt, limits to monetary policy, rising trade protectionism, potential unilateral financial sanctions, and threats of devaluing the dollar. If the US doesn't keep its house in better order, dollar dominance will be the least of our worries.

#Dollar #Dedollarization #UsDysfunction #Greenback #GlobalTrade

https://markets.businessinsider.com/news/currencies/dedollarization-dollar-dominance-us-politics-economy-trade-fed-china-yuan-2024-6