Episode Details

The U.S. dollar is currently the dominant global reserve currency, meaning that it is held by central banks and other financial institutions around the world as a store of value and a medium of exchange. If the dollar were to lose its status as the global reserve currency, several significant consequences could occur: Decreased demand for U.S. assets: As central banks and other financial institutions reduce their holdings of U.S. dollars, demand for U.S. assets, such as Treasury bonds and equities, would decline. This could lead to lower prices for these assets and higher borrowing costs for the U.S. government … Continue reading →