US Domestic Policies May Threaten Dollar's Longterm Status: Former US Treasury Official

Core Viewpoint - The US dollar is experiencing a decline in global trust, raising concerns about its long-term status as the dominant reserve currency [1][2]. Group 1: US Dollar and Global Trust - Jeffrey Schott from the Peterson Institute highlights that US domestic economic policies could further undermine confidence in the dollar [1]. - The dollar's position as the leading reserve currency is not guaranteed, as historical precedents show that currencies can lose their dominance due to government policies [2]. Group 2: Multilateral Negotiations and Trade Agreements - Schott emphasizes that the lack of trust in the implementation of agreements is a significant challenge for multilateral negotiations, leading to a preference for regional and bilateral agreements [2]. - The US withdrawal from the Trans-Pacific Partnership (TPP) is described as a significant error, with the CPTPP offering improvements and increased transparency in trade policies [3]. - Schott expresses skepticism about the US rejoining the CPTPP in the near future [4].