Know The Now – Turning the corner

The recent weakness in the dollar, as well as strength in gold, bitcoin, silver and currencies such as the euro and Swiss franc has rekindled concerns first raised in the 1960s by economist Robert Triffin. The dollar’s “exorbitant privilege” as a reserve currency is the ability to borrow ever increasing amounts at relatively low rates. However, the Triffin Dilemma describes the inherent conflict faced by a nation whose currency serves as the world’s reserve currency.