Hello Everyone,
This is going to affect most people in the United States in a very negative way. For some, they might be able to take advantage of this.
The U.S. dollar’s share of global reserves has fallen from about 60% in 2000 to 40% in 2025—the lowest this century. But why?
National Debt Is a Big Factor
The U.S. has borrowed a lot—over $35 trillion in debt. High debt and inflation make investors nervous, so many foreign governments and institutions are diversifying away from dollars into euros, yen, or yuan.
Why It Matters
Falling demand for dollars can:
- Lower the dollar’s value
- Make borrowing more expensive
- Shift some global economic influence away from the U.S.
Bottom Line
The dollar is still the world’s main currency, but this chart is a reminder: our national debt affects how much trust the world has in it. Staying informed about these trends can help you make smarter financial choices.
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The views stated in this newsletter are not necessarily the opinion of Cetera Advisors LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to the volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. All investing in involves risks, including the possible loss of principle. There is no assurance that any investment strategy will be successful.
Michael Frost is a registered representative offering securities through Cetera Advisors LLC.
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