We published a new video discussing the status of the US Dollar as the world’s reserve currency. There has been an onslaught of media reports in recent weeks about how the US Dollar is declining in reserve status. As we noted in our 2023 outlook, we expect the Dollar to continue declining this year (it’s down 2% and we expect it to fall 5%), but the process of being replaced as the dominant reserve currency is likely to be a very long and drawn out process as other economies mature and the Dollar loses some share. But I wouldn’t expect this to be a crisis of any sort in large part because there is simply no viable alternative at present.
I hope this video gives some objective and practical perspective on this important topic.