This is what we have feared for a long time. If the American dollar loses its status as the primary global currency, it will be bad news for the USA.
Another name for a global currency is the reserve currency.
According to the International Monetary Fund, the U.S. dollar is the most popular. As of the fourth quarter of 2019, it makes up over 60% of all known central bank foreign exchange reserves. That makes it the de facto global currency, even though it doesn’t hold an official title.
In the foreign exchange market, the dollar rules. Around 90% of forex trading involves the U.S. dollar.
Up until now, despite trillions of dollars in foreign debt and continuous large deficit spending, the United States holds global trust and confidence in its ability to pay its obligations.