"My argument is not that the U.S. is wonderful; they're just the least dirty shirt in the world for currency holdings."

[Swede]

For a professor at a business school, Lee has a way with words.

Still, with the United States running massive deficits, and the Trump administration pursuing flailing tariff policies and attempting to seize control of the Federal Reserve, it’s raised questions about the U.S. dollar’s status as the world’s reserve currency. As of September, roughly 54% of Canada’s reserves were held in U.S.-dollar-denominated assets.

Here, too, Lee says such fears are overblown. “When you look at the totality of the foreign reserve market, there is no other currency that could replace the U.S. dollar,” he says. “My argument is not that the U.S. is wonderful; they’re just the least dirty shirt in the world for currency holdings.”

We’re not going back to the gold standard, Lee adds. “The U.S. dollar will be the reserve currency for the rest of the century.”

https://www.theglobeandmail.com/business/article-canada-is-the-only-g7-country-to-sell-off-all-its-gold-reserves-why/

[WSHazel]

1. The world doesn't need a reserve currency

A reserve currency is not necessary in a world where transactions can occur in milliseconds.