PNN – The Financial Times newspaper wrote in an article: The global dominance of the dollar, which was built on trade, alliances and institutions, is now in danger of ending.
According to the report of Pakistan News Network, the Financial Times, asking the question, “Can the dollar remain the king of currencies?”, reported: When economists try to explain the dollar’s prominent role as the sole global currency, they point to structural factors such as the US share of global gross domestic product (GDP) or the depth and liquidity of its financial markets.
The English newspaper continued: This approach is the basis for the optimistic view of many financial market participants, who believe that, no matter what happens, as long as the United States remains the world’s leading economy, the dollar will remain its safe haven.
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The report emphasized that the strength of international currencies depends not only on economic numbers and data, but also on the policies and actions of politicians, which can strengthen or weaken this position.
The Financial Times explained: It was these people who took the crucial steps to build the institutions that made the dollar an international currency, and it will also be these people who will ultimately determine whether these institutions survive or perish.
Al Jazeera TV channel previously assessed in an analysis that Donald Trump’s implementation of tariff policies to achieve economic goals has many long-term consequences, writing: This policy could destroy the global hegemony of the US dollar.
Although the media outlet does not consider the tariffs imposed during Trump’s second administration to be the biggest surprise in his foreign policy, it did note that this measure could have many long-term economic consequences.