War Has Caused Lasting Damage to the Dollar System

The US’s war with Iran has put a potentially irreversible strain on the global trading system, with gold reserves having eclipsed central bank holdings of valuation-adjusted dollar assets for the first time in several decades.

It’s very early days after the announcement of a ceasefire between the US and Iran, yet even if it holds, the conflict is likely to have created lasting effects on the dollar system as President Donald Trump appears to rip up the rules-based order in place since World War II.