The US dollar’s share of global reserves is falling, while the euro and Chinese yuan are becoming more popular. Is the dollar’s reign coming to an end?
Not so fast.
Although the United States’ trade policies are part of the reason central banks around the globe looking to diversify their currency holdings, the dollar remains the world’s reserve currency for a reason: Everyone trades it, the American economy is strong, and it is backed by the full faith and credit of the the US Treasury.
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