Never mind the naysayers, the dollar is untouchable

‘De-dollarisation’ refers to the move by certain countries towards reducing reliance on the US dollar as a reserve currency. But, BNY Mellon thinks aspirations of challenging the US dollar with a rival currency are far-fetched. The de-dollarisation trend has been exacerbated by Russia’s invasion of Ukraine and the repercussions for the developing world of a huge country being sanctioned on such a large scale. However, the greenback’s “exorbitant privilege” as an international means of exchange, provider of liquidity and store of value remains intact for the foreseeable future. This is because...