President Donald Trump issued a stark warning on Wednesday, saying that the loss of the U.S. Dollar’s global reserve status would be tantamount to “losing a major world war.”
What Happened: “You ever hear the expression ‘the dollar is king?’ The dollar is king. We’re going to keep it that way,” Trump said, while speaking to the media on Wednesday.
However, Thierry Wizman, a global FX and interest rate strategist at Macquarie, believes the shift away from the dollar is already underway, and is happening gradually across financial systems.
“No, the dollar is not still king,” Wiseman said, while talking on Bloomberg’s The Opening Trade on Wednesday, adding that “There’s plenty of indications out there that de-dollarization is taking place.”
He pointed to a “slow drip” of changes, including declining allocations to the dollar by reserve managers, foreign lenders asking clients to transact in alternative currencies like the Chinese renminbi, and increased diversification by …