|
I believe this great privilege could have lasted indefinitely. However, I worry that U.S. trade policies and sanctions policies may ultimately cause countries to seek out another reserve currency – one that comes with fewer strings attached. We are already seeing signs of that: The European Union (EU) has signaled that it is looking for ways to create a non-dollar payments system. While the potential abandoning of the U.S. dollar as the reserve currency of choice is years away, in my view, it’s a scenario that could create a significant headwind for U.S. capital markets.
|