The Meb Faber Show · Friday, September 4, 2026
Inigo Fraser Jenkins expresses a more balanced view on the US dollar's reserve currency status, highlighting fiscal sustainability concerns and the 'weaponization of the dollar' as factors that could lead to a shift away. He notes that while there is no immediate alternative, geopolitical events and capricious policymaking might increase the perceived risk of dollar exposure for some nations.
“So, I guess the most obvious case against the dollar retaining its reserve currency status, for example, is this question which is now a front and center in many people's views, which is the question of fiscal sustainability.”
“And I guess the weaponization of the dollar in the wake of the Russian invasion of Ukraine has, you know, led to other people who think they may be at risk of that kind of action at some point in the future having to think about other exposures.”
“So with the dollar, I think it's less a story of expecting depreciation against other currencies, no. It is that the dollar is more risky in some way.”