However, the dollar still accounts for about 60% of global foreign exchange reserves – the next closest competitor (the euro) only stands at around 20%, according to IMF data.

The recent tariff tensions have, however, raised some eyebrows. The White House has hit its trading partners with unpredictable new import duties and that shift toward economic nationalism has made their allies uneasy. Global markets like stability – and that’s being tested right now. Since the start of the year, the US dollar has lost about 10% of its value against a wide basket of currencies.