Dollar at Risk: Dimon Warns of Reserve Currency Threat

JPMorgan CEO Jamie Dimon has warned that the US dollar's status as the world's reserve currency is at risk if the country loses its position as the strongest economy and military power. Speaking on PBS' 'Firing Line with Margaret Hoover', Dimon stated that a weaker US would lead to a more fragmented and dangerous world.

The current share of global foreign-exchange reserves held by the dollar stands at around 57%, down from nearly 70% in the year 2000. Concerns over de-dollarization have intensified since the 2022 Russian asset freezes, although research by the Federal Reserve found no notable shift out of dollar reserves after 2022.

JPMorgan has launched a $1.5 trillion, 10-year Security and Resiliency Initiative aimed at preserving US economic security through diversification and reducing reliance on potential adversaries for strategically important goods. Dimon emphasized that the US should have recognized its dependence on China for rare earths and other equipment years ago and taken steps to address it.