The US dollar has been a symbol of American power for decades. Of the $US7.5 trillion ($11.5 trillion) in global currency transactions that take place each day, some 90 per cent feature the dollar. The majority of central banks see it as the core of their reserves. Consumers run to it in times of stress. Businesses prefer it for trade invoicing, whether they are based in Milwaukee or Malaysia.

The dollar may not lose its globally dominant role any time soon – after all, there isn’t an obvious alternative waiting in the wings. But it is suffering from a self-inflicted wound, and the consequences are just starting to be felt around the world.