> but it is likely that the USD will lose reserve currency status
To what though? Even if we accept the US and USD have issues, there is no other currency even close to be able to step in.
To what though? Even if we accept the US and USD have issues, there is no other currency even close to be able to step in.
Most people don't remember what hard money is, and why it's important.[1]
The Depreciation of the Dollar - https://www.morganstanley.com/insights/articles/us-dollar-de... - August 6th, 2025
Key takeaways:
* The value of the U.S. dollar against other currencies dropped about 11% in the first half of this year, the biggest decline in more than 50 years, ending a 15-year bull cycle.
* Morgan Stanley Research estimates the U.S. currency could lose another 10% by the end of 2026.
* Despite a recovery of 3.2% in July, the delayed impact of tariffs on growth and unemployment – besides policy uncertainties – are likely to keep negative pressure on the dollar.
* Foreign investors have been adding hedges to their exposure to U.S. assets, which will likely further weaken the dollar.