Donald Trump's victory in last month's presidential election has led to a strengthening of the US currency.
In a short period of time, the dollar exchange rate has risen sharply against a number of currencies and still maintains a significant advantage.
But it is possible that the situation will change in the future.
The policy of the elected President of the United States (“America First”), combined with “dollar blackmail,” could lead to the American currency losing its status as the world’s only leading monetary unit.
This was reported by the Asia Times publication.
What could happen to the dollar
The authors of the material, published in a foreign publication, believe that Donald Trump's economic policies could lead to an increase in the national debt of the United States.
In addition, the value of dollar reserves may fall. Other countries may become less willing to invest in US government debt.
And there could also be an increase in tariffs from the United States. The answer to this could be finding a reserve currency to pay for international goods.
The BRICS countries have already discussed the potential emergence of a separate currency. It is possible that Donald Trump's threats will only speed up the process of finding alternative currencies.
If an alternative does emerge, countries will not need huge amounts of dollars. Most likely, there will be a divestment of US Treasury bonds. The result of this process will probably be a significant weakening of the dollar.
