Donald Trump has said if the American dollar loses its global dominance this would be "equivalent to losing a war". And yet, the future of the dollar now appears uncertain; America might indeed be losing. Central bank data shows nations including China have been buying gold in record numbers and have decreased the amount of dollars they hold by 7%, signalling a possible move away from the dollar as the global reserve currency. While American sanctions on Russia, intended to weaken the Russian economy, have resulted in cementing Russia's move away from the dollar and into China's yuan as their main foreign currency. All the while, the Russian economy is doing fine, the IMF expecting it to grow 3.6% this year, and unemployment at record lows.
Is the reign of the dollar over, and if so, might this be a fatal blow to American economic dominance? Would it spell the end also of America's position as the leading global power, and increase military tensions across he world? Or is the dollar here to stay and reports of its decline exaggerated?