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The Future of the Dollar
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The Future of the Dollar

U.S. Financial Power Depends on Washington, Not Beijing

Henry M. Paulson Jr.
Foreign Affairs, 2020
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The US dollar has enjoyed unrivaled pride-of-place as the world’s reserve currency since the end of World War II. In the COVID-19 pandemic’s aftermath, however, the United States must sustain its economic and political strengths to maintain its premier currency position. So says former US Treasury Secretary Hank Paulson in this cogent commentary. He believes that the US dollar’s ongoing status is not a sure thing: America needs to manage its fiscal deficits and debt, along with the public health crisis, in an “open political system” that asserts global leadership.

Take-Aways

  • The US dollar remains the world’s safe-haven currency for now.
  • China’s increasing geopolitical and economic might could see the renminbi challenge the US dollar’s position.
  • America’s ability to build a robust post-pandemic economy and maintain its world leadership role will determine the dollar’s fate.

About the Author

Henry M. Paulson, Jr. chairs the Paulson Institute. He served as US Secretary of the Treasury from 2006 to 2009 and was the chairman and CEO of Goldman Sachs from 2000 to 2006.

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