Why the World Still Needs Wall Street

Outside of the United States, all other financial systems face major constraints on their ability to absorb large financial inflows. That is why geopolitical multipolarity is advancing faster than financial multipolarity, despite the many reasons that investors have to pursue greater diversification. BRASÍLIA—Investors have no shortage of reasons to diversify away from the United States. America’s public debt is rising, political polarization is deepening, trade policy has become unpredictable, the rule of law is now in doubt, and financial sanctions have encouraged other governments to seek alternatives to the dollar. Yet there has been no great exodus from US markets. The dollar still accounted for 56.8% of allocated foreign-exchange reserves at the end of 2025, and was used in 89.2% of all foreign-exchange trades surveyed by the Bank for International Settlements. https://prosyn.org/THAbJ6p Register an account to continue reading with a $1 trial BRASÍLIA—Investors have no shortage of reasons to diversify away from the United States. America’s public debt is rising, political polarization is deepening, trade policy has become unpredictable, the rule of law is now in doubt, and financial sanctions have encouraged other governments to seek alternatives to the dollar. Yet there has been no great exodus from US markets. The dollar still accounted for 56.8% of allocated foreign-exchange reserves at the end of 2025, and was used in 89.2% of all foreign-exchange trades surveyed by the Bank for International Settlements.