King Dollar’s Resilience: Why the Greenback Still Reigns Supreme
The U.S. Dollar’s dominance in the global economy remains remarkably strong, despite ongoing discussions about de-dollarization and the rise of alternative currencies. This was a key takeaway from the IHJ Policy Roundtable on February 17, 2026, featuring economic journalist Paul Blustein, author of the recent book, King Dollar: The Past and Future of the World’s Dominant Currency.
The Enduring Foundations of Dollar Strength
Blustein’s analysis, and the subsequent roundtable discussion, focused on the structural factors that continue to underpin the dollar’s position as the world’s primary reserve and transaction currency. These aren’t simply about economic might; they are deeply embedded in institutional, financial, and geopolitical realities.
The dollar’s widespread use in international transactions – even those between other countries – is a critical component of its staying power. This established network effect creates significant inertia, making a swift shift to alternatives unlikely. As Reuters’ Breakingviews recently noted, King Dollar’s reign is set to continue.
Navigating a Changing Geopolitical Landscape
The discussion too considered the potential impact of policies under a second Trump Administration. While policy shifts can certainly introduce volatility, the fundamental strengths of the dollar are expected to provide a buffer against significant disruption. The Financial Times has highlighted how America has “weaponized” the world’s economy, a factor that, while controversial, reinforces the dollar’s central role through control of key financial systems.
Despite talk of de-dollarization, analysts suggest the USD remains “unstoppable,” as reported by CryptoRank. This isn’t to say challenges don’t exist, but the alternatives currently lack the depth, liquidity, and trust associated with the dollar.
The Role of Institutional Trust and Financial Markets
The U.S. Financial markets are the deepest and most liquid globally, attracting capital from around the world. This demand for U.S. Assets supports the dollar’s value. The institutional framework – including the Federal Reserve’s independence and the rule of law – fosters confidence in the dollar’s stability.
Bloomberg.com recently reported that King Dollar’s reign looks secure – for now. This cautious optimism reflects the understanding that while the dollar isn’t invulnerable, its advantages are substantial and difficult to replicate.
Frequently Asked Questions (FAQ)
- Is the dollar’s dominance guaranteed? No, but the structural factors supporting it are significant and will take considerable force to overcome.
- What currencies pose the biggest challenge to the dollar? Currently, no single currency presents a comprehensive alternative. The Euro, Yuan, and Yen each have limitations.
- How could a second Trump Administration impact the dollar? Policies enacted could introduce volatility, but the underlying strengths of the dollar are expected to provide resilience.
What are your thoughts on the future of the dollar? Share your insights in the comments below!
