Due to President Donald Trump’s willingness to upend the global status quo, financial commentators and elite media outlets confidently predict that the status of the United States dollar is under threat as the global reserve currency. They say that China’s yuan may replace the dollar in that privileged position. The same voices insist that international investors and central banks are preparing to dump dollar-denominated assets.

Fortunately, these claims are laughable.

They reflect a profound misunderstanding of why the dollar matters to the global economy and a stunning blindness to the positive structural changes unfolding in the U.S. The dollar’s dominance is not sustained by sentiment or fashion. It rests on deep structural, institutional, and political foundations, systems that China is neither willing nor able to replicate.

A true global reserve currency must do three things. It must serve as a reliable store of value. It must function as an effective medium of exchange across borders. And it must be backed by deep, liquid financial markets where capital can move freely, at scale. The U.S. dollar satisfies all three conditions. The Chinese yuan satisfies........

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