The struggling global economy has led some to wonder if the U.S. dollar may lose its status as the world’s “reserve currency,” meaning its position as the currency most widely held by foreign governments. But for several reasons, we are more likely to see so-called dollar hegemony continue for some time into the future.
Chinese Foreign Minister Wang Yi and U.S. Secretary of State Anthony Blinken spoke by telephone Sunday, ahead of a possible meeting between President Xi Jinping and President Joe Biden. The two sides appear to be trying to lower the temperature on their relationship, which has recently been characterized by escalating tensions.
Since taking office in May, South Korean President Yoon Suk-yeol has sought to follow through on campaign promises to reorient the country’s foreign policy, including with the U.S., China and Japan. But if Yoon and his advisers were correct in their premises, they were naive about how this promised reorientation would work in practice.