Being the global reserve currency brings immense advantages: lower borrowing costs, persistent demand for sovereign debt, and unparalleled financial influence. But reserve status is not a birthright. It comes with stringent, often overlooked requirements. In a world where the safety-liquidity-return hierarchy governs global capital flows…
Being the global reserve currency brings immense advantages: lower borrowing costs, persistent demand for sovereign debt, and unparalleled financial influence. But reserve status is not a birthright. It comes with stringent, often overlooked requirements. In a world where the safety-liquidity-return hierarchy governs global capital flows, breaching the “safety” pillar would be the most dangerous move of all.
Being the global reserve currency brings immense advantages: lower borrowing costs, persistent demand for sovereign debt, and unparalleled financial influence. But reserve status is not a birthright. It comes with stringent, often overlooked requirements. In a world where the safety-liquidity-return hierarchy governs global capital flows, breaching the “safety” pillar would be the most dangerous move of all.
https://open.substack.com/pub/marketszoon/p/dollar-privilege?r=58uzcq&utm_campaign=post&utm_medium=web&showWelcomeOnShare=false