The United States dollar is the one that the world relies on. Over the decades, it has been the primary trade, investment and savings currency worldwide. Such decisive stance brought stability to world finance, yet it introduced new risks as well. Over the past few years we have seen professionals begin to raise the alarm about dollar weakness and its potential to create larger financial issues.
This issue is also associated with the concept of financial fragility, referring to those systems that appear to be stable externally, but have a vulnerability that might disrupt when pushed. We will discuss in this blog why the dollar can be weak, why the global system is under threat, and why emerging influences such as digital assets and the trade balance shift can complicate the situation even further.