The Troubles Gnawing Away at Dollar Hegemony

The sweeping imposition of US tariffs a year ago didn't wreck the global economy. Nor did it knock the dollar from its pedestal. The legions of greenback antagonists who foresee its demise every decade have been given pause. Yet they may be on to something.

For all its resilience, the US currency is becoming increasingly subjected to forces working to erode its dominance. This doesn’t herald the imminent triumph of the Chinese yuan or the euro, and it goes beyond whether the dollar appreciates or is marked down during any given week or month. The question is whether the dollar's vital global rule — the lion's share of invoicing is in greenbacks, and many cross-border loans are denominated in it, as are commodities including gold, oil and agricultural products — is on borrowed time.