The US’s latest administrative techniques have evolved dramatically now, adapting the one-man army stance. The US’s lack of allies has now become a serious cause of concern, with Bank of England policymaker Cathrine Manner stating how the US’s global positioning can be jeopardized if it continues to follow this method, expediting de-dollarization.
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Bank Of England’s New Cautionary Advice To The US
Bank of England’s Cathrine Mann has outlined how the US dollar’s status as a global currency is up for a deep overhaul. The US has limited its support towards its allies, creating a vacuum in the global diplomatic symmetry. Mann shared how this method could undermine the US dollar’s global positioning as the reserve asset, indirectly giving birth to new branches of de-dollarization.
“If you can’t depend on a certain country to be your ally, then why are you holding their currency in reserve?” Mann said at an event in New York hosted by the Global Interdependence Center and Bloomberg. (As per Reuters.)
Mann shared how diplomatic relations alongside strong military ties have also helped nations build strong global positions. Lack of this hierarchical structure may eventually jeopardize the US’s lead, impacting the US dollar gravely in the process.
“The military alliances, the institutional relationships across countries. The agreements that countries have with each other. These have been identified as being much more important than people thought in the past.” she said.
Trump’s New Methodology to Strengthen the US Dollar
Among the echoes of de-dollarization gaining rapid steam, Trump has now come up with a new plan, adding how stablecoins will be used as primary tools to strengthen the USD in the near future.
“US PRESIDENT TRUMP: ‘With the dollar-backed stablecoins, you’ll help expand the dominance of the US dollar… It will be at the top, and that’s where we want to keep it.”
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