Editorial Board
Mismanagement Is Putting Dollar’s Global Standing in Jeopardy
The US currency’s dominant role in the international monetary system is still an “exorbitant privilege.” But it does have downsides.
It buys a lot.
Photographer: Adek Berry/AFP/Getty Images
In its chaotic way, the White House has raised a fundamental question about the international monetary system: Does the dominance of the dollar impose an unfair burden on America?
The short answer is no. The dollar’s centrality gives the US big advantages — and they’ll be sorely missed if that standing is eroded. At the same time, the currency’s global role does entail some risks, and they need to be better managed.