The Real Risk Isn't US Debt – It's Dollar Demand and Political Sustainability

The real risk isn't US debt – It's dollar demand and political sustainability

Editor's note: Warwick Powell is an adjunct professor at Queensland University of Technology and a senior fellow at Taihe Institute. The article reflects the author's opinions and not necessarily the views of CGTN.Moody's recent downgrade of US Treasury

Exorbitant Privileges, Burdens, etc. and the Implications for Fiscal Policy

Foreigners play an outsized role in the U.S. dollar system. About 60% of the world’s foreign exchange reserves are held in U.S. dollars, about 80% of all cross-border trade (outside of Europe) is invoiced in U.S. dollars, about 60% of international and foreign currency banking assets and liabilities are denominated in U.S. dollars, and about 70% of foreign currency debts issued by companies is denominated in U.S. dollars. For perspective, the U.…

Global Shift Away from US Dollar - Reserve share falls to record 57.8% as central banks turn to gold and yen

The US dollar’s dominance as a global reserve currency hits a historic low at 57.8%, as central banks increasingly pivot to gold and the Japanese yen amid geopolitical tensions and diversification efforts. PATTAYA, Thailand – Global confidence in the US dollar as a foreign exchange reserve currency is declining, with its share falling to 57.8% by the end of 2024 — the lowest level on record, according to a report by Nikkei Asia. Countries around…

Weekly Recap Technical Analysis: US Dollar Maintains Strength Despite Minor Correction towards 100 Level

GBPUSD still trades in an uptrend since the beginning of 2025 with prices respecting the higher lows seen on the daily chart. Bearish correction started after hitting the 1.3460 psychological level, which coincides as well with the historical high recorded in September 2024.  The attention is now on the 1.3360 resistance level. Failing to close above it on the daily chart hints at further declines toward 1.3142. The pair is finding support at th…

US dollar set for fourth straight weekly rise against euro and yen

A U.S.-China trade truce propelled the dollar higher on Monday, though the euphoria soon fizzled out as it dropped on Tuesday and Thursday after U.S. data

U.S. Dollar Dominance Shaken in Global Foreign Exchange Reserves

U.S. dollar banknotes are seen in this illustration taken March 10, 2023. REUTERS The share of U.S. dollars in global foreign exchange reserves held by central banks and governments has fallen to its lowest level on record. As political and economic uncertainties in the United States spread, demand for alternative assets such as gold and the Japanese yen has increased, leading to analysis that the “dollar dominance” system is being shaken. Accor…