Treasury Secretary Scott Bessent champions dollar dominance across global markets and stablecoins — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Bessent defended the U.S. economy citing the dollar's role in 89.2% of foreign-exchange transactions and the prevalence of dollar-pegged stablecoins, alongside record median household income, a historically low official poverty rate, and the Atlanta Fed's 5.1% annualized Q3 GDP estimate.
- Bessent pushed back against a New York Times report outlining structural risks in the country's financial position, amplifying data from commentator Lawrence Kudlow in a post on X.
- Bessent rejected accusations that Treasury bond buybacks were aimed at suppressing yields, calling them tools to improve market liquidity and manage maturities in a Treasury market worth more than $30 trillion.
- Bessent framed Saudi Arabia's exit from the China-backed mBridge digital currency platform as a dollar-dominance victory, but Saudi Arabia said its participation ended after a planned proof of concept in May 2025 and the project continues expanding elsewhere.
- Bessent's defense lands as the 10-year Treasury yield hit 5%, a multiyear high that has fueled concerns about surging government debt and rising borrowing costs.
Why it matters: Bessent's data-driven pushback matters because the 10-year yield sits at 5% — a multiyear high — while the Treasury conducts bond buybacks in a market worth more than $30 trillion, raising questions about whether liquidity management alone explains the operation. The mBridge claim is the weakest pillar: Saudi Arabia described its exit as a completed May 2025 pilot, meaning Bessent's 'victory' is symbolic rather than evidence that dollar-aligned digital rails are routing out China-backed alternatives.
Ask SkimNews
