Trump turned the dollar into a foreign policy tool, and now risks undermining the currency’s extraordinary status, think tank says
A think tank analysis suggests that the U.S. is increasingly using currency swap lines as a foreign policy tool, particularly under the Trump administration, which could undermine the dollar's global status. Historically used for crisis management by the Federal Reserve, these swaps are now reportedly being offered to favored nations, potentially with geopolitical strings attached. Researchers at the Peterson Institute for International Economics warn that this politicization could lead foreign governments to seek alternatives to the dollar, thereby reducing global demand and eroding its post-war dominance. AI
