Global Investors Still Trust the Dollar Despite Rising U.S. Debt
Despite mounting concerns over U.S. debt levels and the economic fallout of ongoing trade disputes, PIMCO CEO Emmanuel Roman remains firm in his belief that the U.S. dollar will continue to dominate global finance.
Speaking in a recent interview, Roman emphasized that the greenback’s status as the world’s reserve currency is reinforced by the unmatched scale and liquidity of the U.S. Treasury market.
“There simply isn’t an alternative capable of absorbing trillions in global capital,” Roman said. He pointed out that even though some investors are looking to diversify, there’s no viable competitor when it comes to moving large-scale funds with minimal friction.
According to him, diversification strategies don’t translate into dethroning the dollar—they simply reflect short-term portfolio adjustments.
Roman also credited the U.S. financial system’s structure—transparent, deep, and rule-based—as a major factor in reinforcing global investor confidence. With Japanese institutions alone holding over $1 trillion in U.S. debt, he noted that Treasuries are not just investment vehicles but also effective hedges against foreign currency exposure, particularly in volatile environments.
He added that “American exceptionalism”—the belief in the United States’ institutional and economic stability—continues to be a magnet for international capital.
Roman argued that in an increasingly fragmented world, the need for a trusted, liquid safe haven is only growing. “Unless another nation can offer the same scale, openness, and credibility,” he said, “the dollar’s dominance is not going anywhere.”
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
