BIS Signals Warnings Over Decline of US Dollar Reserve Status
- Agustín Carstens warns of US dollar’s eroding trust.
- No direct denial from BIS on dollar threat.
- Potential shifts in global reserve dynamics considered.
The BIS has highlighted potential risks to the US dollar’s global reserve status, emphasizing uncertainty in US policies.
Agustín Carstens, with his vast central banking experience, spoke about the erosion of the dollar’s trust. There have been no direct statements overturning concerns about its reserve status. Other BIS officials align with Carstens but maintain caution rather than denial.
The emphasis from Carstens and others has led to increased interest in alternative assets. As Agustín Carstens noted, “As of July 4, 2025, there is no public statement or tweet from Carstens or other BIS officials denying the risk; in fact, the most recent primary signals indicate the BIS has warned of erosion in dollar trust rather than downplayed it.” On-chain assets like ETH and BTC, alongside stablecoins, are gaining attention amid distrust in traditional currencies. Gold, CHF, and JPY have also seen renewed interest.
BIS warnings have influenced market dynamics, showing a relative weakness of the US dollar and Treasuries. Investment portfolios show a tilt towards gold and stablecoins not solely backed by dollars.
