The U.S. dollar was involved in 89.2% of foreign exchange transactions in April 2025, according to the BIS, and made up about 56.8% of global allocated FX reserves at the end of 2025, per the IMF. This status lets U.S. businesses trade in their own currency, supports deep capital markets and can lower financing costs. However, the article argues Americans rarely view their money from an outsider's perspective, while people elsewhere face currency depreciation that raises import prices and debt burdens. Reserve status does not remove risks such as federal deficits, rising debt-service costs and inflation, and replacing the dollar would be very difficult. The author urges Americans to consider purchasing power rather than only dollar-denominated gains, without predicting the dollar's collapse.
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