Dollar Strength, Dollar Strain: Navigating a New Global Monetary Order

The U.S. dollar has long anchored global trade, investment, and financial stability. Yet, in recent years, forces both within and outside of the United States are rethinking dollar dominance. President Trump’s proposed Mar-a-Lago Accord aims to devalue the dollar while retaining its global reserve status. Simultaneously, threats to Federal Reserve independence and Washington’s growing debt are eroding the value of the dollar, which is down over 5% in the last year vs other major currencies. Internationally, the BRICS nations are expanding trade in local currencies, to reduce exposure to U.S. sanctions and policies. These trends are prompting policymakers to reexamine the role of the dollar in the global economy. Is the era of uncontested dollar dominance ending? What would a more multipolar monetary order mean?