24th April 2025

A variety of factors are leading to a weakening in the dollar – pullback from extreme equity market positioning being one.

Offshore Dollar funding remains significant – a decline in global growth (trade) can lead to a sizeable USD shortage down the line.

Institutional credibility underpins the dollar system itself. Erosion of confidence in this will call the dollar’s hegemony into question. However we are not there yet.

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