Will a Default Risk the Dollar’s Status as the World’s Reserve Currency?
I have a question for anyone who might be able to answer it. Will a default risk the dollar’s status as the world’s reserve currency? I know very little about this, but it is my understanding that central banks hold not only dollars, but also dollar denominated assets. I take this to mean that they are probably holding Treasuries. If we have a default, what impact will it have on the dollar as the world’s reserve currency? I’m genuinely curious.