Fareed’s take: America’s fiscal woes are putting dollar dominance at risk

CNN - May 11th, 2025
Open on CNN

The United States has long enjoyed the benefits of the dollar being the world's primary reserve currency. However, as the national debt continues to grow and economic challenges mount, Fareed Zakaria warns that the dollar's dominance is under threat. This potential decline in the dollar's status could have significant repercussions for Americans, affecting everything from the cost of imported goods to the country's geopolitical influence.

The context of this development is rooted in the burgeoning national debt, which raises concerns about the US's fiscal stability. As other countries explore alternatives to the dollar for international trade and reserves, the implications of a weakened dollar are profound. A shift away from dollar dominance could lead to increased borrowing costs and diminished global influence for the United States, impacting economic growth and the standard of living for its citizens.

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RATING

6.0
Moderately Fair
Read with skepticism

The article provides a clear and concise overview of the potential risks to the dollar's status as the world's primary reserve currency, highlighting the benefits and challenges associated with this position. While the story is generally accurate, it lacks detailed evidence and diverse perspectives, which affects its balance and source quality. The absence of explicit citations or references to authoritative sources raises questions about the credibility of the information presented. Despite these limitations, the article addresses a timely and relevant topic with significant public interest, though its potential impact and engagement are somewhat constrained by the speculative nature of some claims. Overall, the article is well-written and accessible, but it would benefit from greater transparency and a more balanced presentation of viewpoints.

RATING DETAILS

7
Accuracy

The story accurately claims that Americans benefit from the dollar's status as the world’s primary reserve currency, which is supported by the ability of the U.S. to issue debt in its own currency. However, the statement about the national debt ballooning and economic woes needs more precision and context. While it is true that the U.S. national debt is increasing, the story lacks specific data or references to support the claim. Additionally, the assertion that the dollar's dominance will diminish and Americans will suffer is speculative and requires further evidence. Overall, the story is generally accurate but lacks detailed supporting information for some claims.

6
Balance

The story presents a singular perspective focused on the potential decline of the dollar's dominance and its negative implications for Americans. It lacks a balanced view by not considering other perspectives, such as potential benefits of a diversified global currency reserve system or counterarguments regarding the resilience of the U.S. economy. The absence of these viewpoints creates an imbalance, suggesting a bias towards a pessimistic outlook without acknowledging other possible outcomes or expert opinions that might offer a more nuanced view.

8
Clarity

The language used in the story is clear and concise, making it easy for readers to understand the main points. The structure is straightforward, with a logical flow from the benefits of the dollar's status to the potential consequences of its decline. However, the tone could be perceived as somewhat alarmist, which might affect the perceived neutrality of the article. Overall, the clarity of the presentation is strong, but the tone could be more balanced.

5
Source quality

The story does not explicitly cite any sources, which raises questions about the credibility and reliability of the information presented. Without clear attribution to authoritative sources or experts, it is difficult to assess the impartiality and accuracy of the claims. The lack of source variety and authority diminishes the overall quality of the reporting, as readers are left without a clear understanding of the basis for the statements made.

4
Transparency

The story lacks transparency in terms of disclosing the context and methodology behind the claims. There is no explanation of how conclusions were reached or any potential conflicts of interest that might affect the impartiality of the reporting. This lack of transparency makes it challenging for readers to evaluate the validity of the information and understand the factors influencing the article's perspective.

Sources

  1. https://pro.thestreet.com/market-commentary/is-the-u-s-dollars-reserve-currency-status-at-risk-and-does-it-even-matter
  2. https://www.chathamhouse.org/2025/04/us-dollars-role-international-monetary-system-now-dangerously-flux
  3. https://news.darden.virginia.edu/2025/04/15/is-king-dollar-in-danger-of-losing-its-crown/
  4. https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/market-updates/on-the-minds-of-investors/where-is-the-us-dollar-headed-in-2025/
  5. https://wolfstreet.com/2025/03/31/status-of-us-dollar-as-global-reserve-currency-central-banks-diversify-into-other-currencies-and-gold/