AXA Investment Managers analyzes the potential shift in the global financial system as the US considers policies that could impact the dollar’s dominance.
Key Insights:
- US Dollar Uncertainty: Discussions in Washington suggest potential taxation on foreign capital inflows, which could weaken the dollar’s global status.
- Historical Parallels: Comparisons to the 1971 "Nixon Shock" highlight the risks of disrupting the current monetary order.
- Euro as a Contender: With stronger fiscal policies, the Euro could gain traction as a reserve currency, though structural barriers remain.
Explore the full analysis and its impact on investors—read the full report.