Global debt markets show dollar dominance moves in cycles, US Fed says

The US Federal Reserve recently released a study discussing the dominance of the dollar in global bond markets. The findings indicate that despite periodic challenges, a lack of credible alternatives has kept the dollar in a central position. The dollar remains a key currency for international trade and investment. The study highlights how the dollar impacts the entire global financial system and analyzes its steady demand, particularly in developing countries. Beyond economic factors, the dollar's use reflects political and social aspects. Looking ahead, unless there are significant trends threatening the dollar’s dominance, the dollar-centric market structure is likely to persist.