A renewed discussion has emerged over former President Trump’s push to acquire Greenland, sparking concern among financial analysts. Thu Lan Nguyen, a senior strategist at a major German bank, warns that such aggressive foreign policy rhetoric could pose a serious threat to the U.S. dollar’s long-standing dominance in global markets.
Strained Transatlantic Ties Could Reshape Global Finance
Nguyen argues that confrontational moves toward allied nations could erode trust within Western alliances. Should diplomatic tensions escalate into mutual sanctions, Europe may accelerate efforts to reduce reliance on the dollar. This shift wouldn’t just affect bilateral trade—it could destabilize the foundation of dollar-centric global transactions.
- Escalating friction may boost demand for alternative currencies like the euro
- European firms could abandon dollar-denominated payments to avoid exposure
- A decline in transatlantic commerce would directly cut demand for USD
A Structural Threat to Dollar Supremacy
The dollar’s reserve status has long rested on geopolitical stability and institutional credibility. But when foreign policy appears erratic or coercive, allies may seek financial independence. The real danger isn't the act itself, but the signal it sends: that economic partnerships are vulnerable to unilateral pressure.
As global power structures evolve, more economies may rethink their exposure to the dollar. What emerges could be a more fragmented, regionally diversified financial system—one where the greenback no longer holds unquestioned sway.