Story perspectives

Dollar Dominates Reserves Despite 120% Debt, Global Shift

6/3/2026

Summary

Story summary

Despite a debt-to-GDP ratio above 120% and a current-account deficit that briefly topped 5%, the U.S. dollar remains the currency, holding roughly three-fifths of foreign-exchange reserves.
Export invoicing stays entirely in dollars, while dollar-pegged stablecoins have boosted demand.
The 1956 Suez Crisis ended the British pound’s global-reserve role, after which Europe trades mainly in euros and China prices energy contracts in renminbi while expanding its Cross-border Interbank Payment System (CIPS).

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Story summary

Despite a debt-to-GDP ratio above 120% and a current-account deficit that briefly topped 5%, the U.S. dollar remains the currency, holding roughly three-fifths of foreign-exchange reserves.
Export invoicing stays entirely in dollars, while dollar-pegged stablecoins have boosted demand.
The 1956 Suez Crisis ended the British pound’s global-reserve role, after which Europe trades mainly in euros and China prices energy contracts in renminbi while expanding its Cross-border Interbank Payment System (CIPS).