Playing Jenga with the global monetary system

Assumptions that underpin the US dollar’s status as the world’s primary reserve currency are eroding more quickly than expected. What happens if the tower starts to collapse? Although the US dollar has unique advantages that prop up its status as the world’s primary reserve currency, these cannot be immutable. Assumptions that underpin its historic dominance have slowly been eroded for more than two decades. The dollar is now home to around 58% of global foreign exchange reserves, compared with 70% at the turn of the century. As global central banks grapple with a slow-motion decline in the...