Ian Explains

For 80 years, the US dollar has been the world's reserve currency. Its dominance was built on US economic strength, institutional trust, and the post-World War Two Bretton Woods system, which pegged global currencies to the dollar rather than gold. But today, the greenback is under pressure. The dollar shed about a tenth of its value in the first year of Trump's second term. Tariffs, White House pressure on the Federal Reserve, and rising debt have all shaken confidence.

Xi Jinping has made renminbi internationalization a top priority. Vladimir Putin has repeatedly called on BRICS nations to ditch the dollar. But for all the talk of de-dollarization, when uncertainty hits, the dollar is still what people reach for. Foreign investment in US assets actually climbed in the second half of 2025.

The reason: TINA, there is no alternative. Until another currency offers the depth, liquidity, and institutional backing of the dollar, the greenback isn't going anywhere. Trump's policies are accelerating efforts to diversify, but dethroning the dollar requires a replacement, and no one has one ready.