Chris Borges
The U.S. dollar is at the center of the global economy, comprising 90 percent of foreign exchange transactions and 60 percent of foreign reserves. The dollar’s key international role, known as “dollar dominance,” has important advantages for the United States. But it also means that a less-dominant dollar would come with costs for the American economy and national security.
While the dollar remains dominant today, global economic trends and policy decisions at home may be undermining it. As foreign nations increasingly grow wealthy, the demand for foreign currencies naturally goes up. Meanwhile, Washington’s frequent use of dollar-based sanctions can lead foreign governments, businesses, and individuals to look for alternative currencies.
Join CSIS’s Scott Miller as we dive into the world of global trade and finance to show how currencies and geopolitical power are fundamentally linked.
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