27 August 2024
The Brookings Institution researchers identify four key challenges to the US dollar’s dominance in global financial markets:
US sanctions driving de-dollarization efforts in some countries
Rising US debt potentially eroding investor confidence
Improved payment technologies making it easier to exchange non-traditional currencies
Development of central bank digital currencies (CBDCs) by other nations
While the dollar remains the dominant global reserve currency, its share has declined from 71% in 1999 to 59% in 2024. Despite these challenges, experts believe the dollar’s top status is not under immediate threat due to a lack of viable alternatives.