Speculation has grown that President Donald Trump favors a weaker U.S. dollar, a stance that could prompt other countries—especially in Asia—to let their currencies appreciate in exchange for more favorable trade deals. This potential shift threatens to erode the dollar’s longstanding global dominance by undermining confidence in its value and stability. Adding fuel to this debate, Trump’s top advisers now argue that the dollar’s global dominance is more a burden than a privilege. But is this assessment accurate? And is the era of dollar dominance truly coming to an end?
Kenneth Rogoff, a Harvard professor, former chief economist at the IMF, and author of Our Dollar, Your Problem: An Insider’s View of Seven Turbulent Decades of Global Finance and the Road Ahead, explores these questions in depth in his article, “This Time Really Is Different for the Dollar,” published in The Economist on the 5th of May, 2025. Alongside Rogoff’s analysis, this article incorporates recent global economic developments—including shifts in U.S. trade policies, emerging currency alternatives, and evolving international financial dynamics—to provide a comprehensive view of the challenges facing the U.S. dollar’s dominance.
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