Jamie Dimon says the dollar could lose reserve-currency status if the US loses its economic and military edge

Aug 10, 2026 12:02 PM - 2 hours ago 1

The dollar could yet suffer its position arsenic the world's reserve rate if the US fails to support its economical and subject dominance, JPMorgan Chase CEO Jamie Dimon said.

"If we're not the strongest subject successful 25 years and the strongest economy, we won't beryllium the reserve rate either," Dimon said connected PBS' "Firing Line pinch Margaret Hoover," which aired complete the weekend.

"The world will beryllium fragmented, and it'll beryllium very vulnerable for us," Dimon added.

The dollar remains the world's ascendant reserve currency, accounting for astir 57% of world foreign-exchange reserves, down from astir 70% astatine the move of the century.

The freezing of Russian central-bank assets aft Russia's 2022 penetration of Ukraine fueled concerns that the US's usage of financial sanctions could accelerate a displacement distant from the dollar. So far, however, Federal Reserve investigation has recovered nary notable post-2022 displacement retired of dollar reserves.

For Dimon, maintaining America's economical and subject separator besides intends reducing its dependence connected imaginable adversaries for strategically important goods.

The US should person recognized 10 aliases 15 years agone that it was relying connected China for rare earths, aluminum, definite types of steel, and different equipment, he said.

"We can't trust connected China for that, we can't let mercantilist behavior, we request to do it here, we made a mistake," Dimon said.

Dimon past pointed to the warfare successful Iran arsenic grounds of different vulnerability: America's expertise to prolong a prolonged war.

"The warfare successful Iran has pointed retired we didn't person productive capacity to take sides the United States if location was a existent warfare that lasted for a agelong play of time," Dimon said. "And that's a hellhole of a statement."

Addressing those weaknesses has go urgent, he said.

In October, JPMorgan launched a $1.5 trillion, 10-year Security and Resiliency Initiative focused connected industries important to US economical security, from captious minerals and precocious manufacturing to energy, defense, AI, and quantum computing.

Dimon said astatine the clip it had go "painfully clear" that the US was excessively reliant connected unreliable sources for captious minerals, products, and manufacturing basal to nationalist security.

Huileng Tan is simply a elder newsman based successful Singapore, covering markets, the world economy, commodities, and investing. Her reporting focuses connected really shifts successful money, demographics, technology, and policy are reshaping businesses, wealth, and mundane life astir the world.Since joining Business Insider successful 2021, she has covered everything from commodity booms and investor trends to China's economy, the AI trade, and the forces driving global markets.Before joining Business Insider, she reported for CNBC, Dow Jones, ICIS, and The Wall Street Journal.In 2018 and 2019, she won the Singapore Exchange Orb Awards for Story of the Year – Derivatives for her reporting connected the world commodities and derivatives markets.Reach her astatine [email protected].