IIF Global Macro Views: Reading the Dollar Under Pressure

About this work

Short-term dollar weakness need not signal a lasting loss of the currency's international role. The analysis finds gradual reserve diversification alongside continued dominance in trade invoicing, funding and payments, while local-currency borrowing still leaves economies exposed to US yields and hedging costs. Treasury market liquidity and collateral functions remain central. Changes in payment infrastructure alone do not establish displacement; that would require broader evidence across reserves, currency trading and invoicing.