The US dollar remains the dominant global reserve currency and shows strong resilience today. It underpins global finance through deep liquidity in markets and broad central banks holdings.
Central banks worldwide hold large amounts of USD-denominated assets, including those of geopolitical rivals. Data shows the US Treasury market sees heavy, steady demand from global buyers.
The dollar absorbs global capital at a scale no other currency currently matches. Its debt instruments are easier to buy, sell, and liquidate than most local currencies.
The currency typically strengthens during recessions, major financial downturns, and international wars (Ed. note: Historical episodes show the dollar often gains value during turmoil). Even de-dollarization efforts may reinforce the dollar because no single alternative matches its market depth.
