DOLLAR DOUBTS

De-dollarization talk has picked up of late due to continued concerns over rising US public debt and whether its growth is sustainable. Recently, two new concerns have emerged. The first: rising investor concerns about the strength of US political institutions and fears they’re more fragile than previously assumed. The second involves geopolitical alliances. Central banks prefer holding currencies of their allies, but some nations (e.g. Canada) may re-examine those relationships.