King Dollar Stays Strong Despite Yuan’s Challenge and Global Shifts

The US dollar, often referred to as "King Dollar," continues to hold its position as the dominant global currency, despite various challenges.

While the Chinese Yuan is often highlighted as a potential competitor, it has not managed to significantly disrupt the dollar’s global influence. According to a report by the Economist, the US dollar remains at the forefront of international finance, leading in areas like cross-border invoicing and foreign exchange transactions.

Although the dollar’s share of global reserves fell from 75% to 59% by 2023, this decline reflects a return to levels seen in 1995 rather than a major threat to its standing.

The currency’s resilience is bolstered by strong alliances with advanced economies, which make it difficult for these nations to switch to the Yuan without risking trade disruptions.

In the context of the upcoming US elections, former President Donald Trump has proposed measures to protect the dollar’s dominance, including imposing a 100% tariff on countries that move away from using the dollar as a reserve currency. His stance has reinforced the greenback’s stability, as it continues to demonstrate gradual growth.