For nearly eight decades, the U.S. dollar has occupied a place in the global order that no other currency has matched. It is the world’s default unit of account, its preferred medium of exchange, and its ultimate store of value. This dominance has given Washington enormous advantages, from low borrowing costs to unmatched financial leverage. It has also encouraged the belief that the dollar’s supremacy is permanent.

That belief is weakening.

As 2026 begins, the dollar is under sustained pressure after a notably weak 2025. It has opened the year near multi-month lows, weighed down by expectations of further Federal Reserve rate cuts as inflation eases and labor markets cool. These are not merely technical adjustments. They reflect a broader reassessment of the United States as the world’s financial anchor.

That reassessment has been sharpened by events far from Wall Street. The capture of Nicolás Maduro in Caracas and his rapid transfer to New York to face narco-terrorism charges was a stark reminder of how tightly American military reach and financial power are intertwined. Global stock markets trended higher, and Venezuelan bonds rallied on hopes of political change. Oil prices dropped, while gold surged as investors sought safety. The message was clear. American power is effective, but it is also unsettling.

For many countries, especially in the developing world, the lesson was not about Venezuela itself. It was about vulnerability. When military force and financial control move........

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