America's modern administrative methods have now evolved dramatically to accommodate a one-man army attitude. The US's lack of allies is now a serious concern, and Bank of England policy committee member Catherine Manners has described how the US' global standing could be at risk if this approach of promoting de-dollarization continues.
Bank of England issues new warning advisory for US
Katherine Mann from the Bank of England outlined how the US dollar's status as the world currency is facing a fundamental overhaul. The United States has limited its support to allies, creating a vacuum in global diplomatic symmetry. Mr. Mann shared how this approach could undermine the US dollar's global status as a reserve asset and indirectly create new branches of de-dollarization.
“If you can't count on a particular country as an ally, why would you hold that country's currency in reserves?” Mann said at a New York event hosted by the Center for Global Interdependence and Bloomberg. (According to Reuters)
Mr. Mann shared how diplomatic relations, along with strong military ties, help countries build a strong global position. This lack of hierarchy could ultimately jeopardize the US lead and have a significant impact on the US dollar in the process.
“Military alliances, institutional relationships between states, agreements between states. These turned out to be much more important than people thought in the past.” she said.
Trump's new methodology to strengthen the US dollar
As the de-dollarization sentiment quickly gains momentum, President Trump has devised a new plan, adding how stablecoins will be used as a key tool to strengthen the US dollar in the near future.
“U.S. President Trump: “Using dollar-backed stablecoins will help extend the dominance of the U.S. dollar…The U.S. dollar will be at the top, and we want to keep it there.''
