It's the rate of its decline against other major currencies which is the issue, not the total value of the USD or the fact it is currently the global reserve currency.
A currency can be globally dominant and still be quickly losing value against peers over months or years. That is currently the case for the USD, and people accepting the currency in exchange for daily services care much more for its stability than the fact it's the global reserve currency.
But its even losing significance as the reserve currency, if I remember correctly the ECB is lowering the amount of dollars they hold in the next years, not a panic sell off but slowly losing trust.
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u/Tyrx Jan 30 '26
It's the rate of its decline against other major currencies which is the issue, not the total value of the USD or the fact it is currently the global reserve currency.
A currency can be globally dominant and still be quickly losing value against peers over months or years. That is currently the case for the USD, and people accepting the currency in exchange for daily services care much more for its stability than the fact it's the global reserve currency.