Commentary
Former President Donald Trump has expressed concern that China could displace the U.S. dollar as the global reserve currency. The warning follows reports of agreements between various nations to use the yuan in commodity transactions.
For years, rumors have circulated about the demise of the U.S. dollar as a global reserve currency, but the greenback continues to be the most traded and extensively used currency in the fiat world.
The U.S. dollar is by far the most traded currency on the foreign exchange market, according to the Bank for International Settlements. In 2022, the U.S. dollar “remained the world’s dominant vehicle currency.” In April 2022, it was on one side of 88 percent of all transactions, unchanged from the previous survey….