As per a recent report by the Financial Times, officials in Washington are currently figuring out ways to boost US dollar dominance. The current strategy includes curating ways for other countries to adopt the US dollar as their primary currency and, at the same time, cancel out any rising de-dollarization risks.
The report shared how staff from Washington have already met with Steve Hanks, a professor at Johns Hopkins University and an expert on dollarization, to discuss and curate pathways boosting US dollar confidence in the world.
“This is a policy they are taking very seriously, but it is in progress. No final decisions have been made yet,” Hanke told the Financial Times.
FT was quick to add the background narrative, stating how the peso crisis in Argentina serves as a credible premise for this dollar dominance change. Per the platform, some analysts and experts view the Latin American economy as a prime candidate for dollarization. However, experts later shared how China’s frequent attempts at de-dollarization are what compelled Washington to consider this step.
“[The political personality] made clear what was already clear to me: there was a group high up within the administration that was interested in bolstering the international role of the dollar. The high and mighty had requested that all related issues be thoroughly examined, and that’s where yours truly comes in.” Hanke said, adding that the interest in dollarization was “in the same space” as the administration’s push for broader use of dollar-backed stablecoins. (As quoted by FT)
Dollarization Plans Still Under Process As Of Now
The FT confirmed now. Washington officials have met Hanke, but have yet to explore any definite path towards dollarization. U.S. President Donald Trump has always shared his opinion on how he wants the world to explore the US dollar as the primary currency for trade.
“Trump wants to keep the dollar as the world’s reserve currency… as China is actively trying to take it away. If other countries want to leave the dollar, they WILL NOT do business in the United States. Trump says we WILL NOT be taken over by China. Like they took over and destroyed the auto industry in Europe.” As shared by analyst MJTruthUltra