August M
The US dollar is losing value in some areas under Donald Trump’s economic policies, but its dominant role in global trade and finance remains largely intact.
Spanish outlet elEconomista.es reported that despite political pressure from the White House and growing geopolitical tensions, the dollar continues functioning as the backbone of the international monetary system.
Trump targets dollar
According to elEconomista.es, Trump has increasingly treated a weaker dollar as a political objective, arguing it could make American exports more competitive and help reduce the US trade deficit.
The report said advisers linked to Trump have promoted the idea that the dollar is structurally overvalued and should be weakened through coordinated pressure on other economies.
ElEconomista.es compared the approach to a more aggressive version of the 1985 Plaza Accord, but without the same level of international cooperation.
Deficit remains
The article argued that America’s trade deficit is tied more closely to domestic economic imbalances than currency strength alone.
According to figures from the US Bureau of Economic Analysis cited in the report, the US trade deficit reached roughly $901.5 billion in 2025, barely changing from the previous year.
ElEconomista.es noted that tariffs altered trade flows temporarily but failed to significantly reduce the broader imbalance.
Dollar still dominates
Despite fluctuations in value, the dollar continues dominating global finance and trade.
The report stated that around half of global trade transactions are still conducted in dollars, while nearly 60 percent of international debt is denominated in the currency.
ElEconomista.es also cited economist Paul Krugman, who argued the dollar maintains its role partly because global markets continue using it by default in a self-reinforcing system.
Alternatives limited
The article suggested that neither the euro nor China’s yuan currently offers a credible replacement for the dollar’s global role.
While the euro faces institutional fragmentation and the yuan remains restricted by state controls, investors continue treating the dollar as a safe-haven asset during periods of crisis.
ElEconomista.es argued that the international monetary system is not collapsing but gradually evolving into a more fragmented and multipolar structure.
The report also warned that political pressure on the Federal Reserve could eventually weaken confidence in the dollar if the independence of the US central bank is undermined.
Sources: elEconomista.es, US Bureau of Economic Analysis.
