Despite a growing chorus of pundits claiming the “death of the dollar” is imminent, Treasury Secretary Scott Bessent said the dollar will remain the world’s reserve currency.
The dollar is in the midst of its worst start to a year on record...
The following clip from Bloomberg was based on a speech Scott Bessent gave Thursday morning to the IMF and World Bank:
More broadly, the Treasury secretary reinforced backing for the central role of the US and its dollar in the global financial system.
“I think that the US will always, for my lifetime, be the reserve currency,” said Bessent, age 62.
He also quipped of the global reserve role, saying “I am actually not sure that anyone else wants it.”
As RealInvestmentAdvice.com reports, some believe Donald Trump’s economic policies are designed to end the dollar’s role as the world’s reserve currency.
Scott Bessent clears up such misinformation, affirming the dollar’s status as the reserve currency.
In Trump’s Economic Revolution, we opined on the long-standing Bretton Woods Agreement that made the dollar the reserve currency and how Trump may be steering away from some of the “rules” that evolved since the agreement was signed in 1944.
The agreement and its unwritten rules are economically unsustainable. Trump is rightfully taking action to change them.
However, that doesn’t mean he intends to change the dollar’s status as the reserve currency.
As we summarized in the article mentioned above:
The dollar will likely remain the world’s reserve currency as no reasonable alternative exists. However, the unspoken agreements and promises surrounding the global economy may change drastically.
