Dollar dominance means US risks also pose risks to others
JulkaisusarjaBank of Finland. Bulletin
JulkaisijaBank of Finland
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-201904181153
The dominant position of the US dollar exposes other countries to changes in the economy and domestic policies of the United States, while also creating global systemic risks. The role of the dollar is expected to decrease with time as the roles of other economic areas and their currencies increase. Given the lack of a realistic competing currency, however, it is rather unlikely that the status of the dollar will weaken at the moment, which highlights the need for cooperation in terms of managing risks to the international financial system.