There has been significant talk about the dollar’s fall, but it often ignores how important the dollar is to global trade and finance on a number of metrics.
As US global hegemony declines, dollar dominance will deteriorate, but we are still a long way from the rise of an alternative. The EU needs a safe asset, and China must be willing to allow open capital flows.
After seeing a decline earlier in the year, it is now near year highs. It is certainly off the 2022 highs, but it is still higher than five years ago.
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