The reform of the international monetary system has been a subject of constant debate, reflecting widespread dissatisfaction with the dollar-based and US-controlled arrangements that have prevailed since World War II. The United States is very much attached to its privileged and dominant position, and is unwilling to seriously contemplate any changes to it. The rest of the world is increasingly uneasy with the way the US handles its dominance. Heavy-handed weaponization of finance and, since 2025, of trade policy have weakened confidence in the dollar and US Treasuries. Moreover, the weak spots of the American economy, including severe fiscal and financial fragilities, sow suspicion about the trustworthiness of dollar assets. There is, therefore, an undeniable need for alternatives – a need that may become urgent if a new financial crisis erupts in the United States. This is the background for the present paper.
https://valdaiclub.com/a/reports/a-path-to-a-new-reserve-currency
