As President Donald Trump's tariffs threaten the US economy, questions are being asked about how long the dollar can maintain its status as the world's key trading and reserve currency.

AFP examines the greenback's current situation and outook:

The dollar, whose strength is based on the economic and political power of the United States, is traditionally considered a preferred safe haven in times of crisis or conflict.

Almost 58 percent of foreign exchange reserves together held by the world's central banks were denominated in dollars as of the final quarter last year, according to the International Monetary Fund.

That compares with 71 percent in 1999, with the drop attributed to rising competition from smaller currencies.

Roughly half of all global transactions by value are currently in dollars, compared with around 22 percent for the euro, seven percent for the pound sterling, and four percent for the Chinese yuan, according February data from international payments facilitator Swift.

Many strategic commodities, such as oil, are quoted in the greenback, reinforcing its central role across global trade.

However, the........

© International Business Times