sakura Posted October 18, 2017 Report Share Posted October 18, 2017  The might of the USD and its position as the leading reserve currency has been called into question by numerous analysts over the years. During periods of political and economic uncertainty doubts about the USD attract a wider audience, prompting further proclamations about its demise. Some analysts claim a collapse is imminent, others predict that it is just a matter of time and yet it remains the most highly traded currency in forex, the dominant currency in international trading and remains the leading reserve currency. It has history on its side and is clearly still trusted by its trading partners. But the question of its future warrants consideration as it comes under threat from the EUR and other currencies who may be ready to challenge the USD as the dominant reserve currency. TROUBLE FOR TRUMP’S ECONOMIC POLICY When US President Donald Trump came to power in 2016 he pledged policies that would propel the value of the USD to new levels. The objective was to boost US structural economic growth while at the same time reducing the US trade deficit. Trump’s plan was going to be achieved by making large investments in infrastructure and extensive tax reforms in combination with a highly protectionist trade policy. Thus far Trump’s plans have been hamstrung by political division and budget constraints. The US trade deficit continues to grow and there’s been little sign of the promised protectionism.  For more detail : Is time running out on US Dollar as the leading reserve currency? Quote Link to comment Share on other sites More sharing options...
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