China's CNY channel With Singapore's SGD as a Direct Trade

The U.S. Dollar (USD) has long time enjoyed premium status as an unofficial global currency. It’s understandable, given the size of our economy and considering the fact that the United States produces about 22% of the world’s entire economic output.

Much international trade is transacted using the USD because many countries’ currencies are pegged to the Dollar. The fact that the Dollar accounts for about 61% of the world’s foreign exchange reserves confirms its strong position in international trade.

However, the Dollar is in a precarious position because the U.S. Government accumulates more debt than other global economies. For instance, the federal debt held by the investing public now stands at 74% of the U.S. economy and is projected to rise to 106% of our Gross Domestic Product by 2039 if the current economic situation continues.

Read More: China And Singapore Ditch The U.S. Dollar For Direct Trade