The OMFIF Podcast What’s next for the dollar?
Sep 15, 2025
Max Castelli, head of strategy for sovereign institutions at UBS Asset Management, shares insights on the future of the U.S. dollar in the global financial system. He discusses the dollar's resilience amid challenges, the rise of gold as a crucial reserve asset, and the implications of digital currencies. The conversation highlights concerns from central banks, the geopolitical dynamics affecting currency trust, and the importance of the Federal Reserve's credibility in maintaining the dollar's status. Will any challengers emerge to truly rival the dollar? Tune in to find out!
AI Snips
Chapters
Transcript
Episode notes
Dollar Dominance Is Eroding Slowly
- The dollar remains the global anchor but its dominance is eroding gradually.
- Continued US institutional weakness could accelerate reserve managers' shift away from the dollar.
Survey: Confidence Sustains The Dollar
- UBS survey shows 80% expect the dollar to stay dominant, but confidence is waning.
- Hedging rises and inertia, not conviction, currently sustains the dollar's role.
No Ready Replacement For The Dollar
- Lack of a suitable alternative reinforces the dollar's dominance via liquidity and network effects.
- In crises, capital still tends to flow to the US despite recent stresses.