The Dollar's Death Is Greatly Exaggerated

Jun. 20, 2025 6:42 AM ETUS Dollar Index (DXY), , , 10 Comments
(15min)

Summary

  • The dollar remains the cornerstone of global finance due to structural, economic, and geopolitical factors unlikely to shift abruptly.
  • Without a currency matching the dollar’s deep, liquid markets and global trust, the dollar’s death remains improbable in the near term.
  • China holds ~$2 trillion in dollar-denominated assets, underscoring its reliance.
  • Humans are hardwired to prioritize negative information over optimistic information.

Dollar currency fluctuation, inflation and stock market value loss.

cagkansayin/iStock via Getty Images

The narrative surrounding the “dollar’s death” as the world’s reserve currency has been on the rise recently. However, this happens whenever the dollar declines relative to other currencies. We previously wrote about the false claims of the

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The majority of my time is spent analyzing, researching and writing commentary about investing, investor psychology and macro-views of the markets and the economy. My thoughts are not generally mainstream and are often contrarian in nature but I try an use a common sense approach, clear explanations and my “real world” experience in the process.

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