Dollar's dominance leaves world vulnerable to US

The American dollar's share as an international funding currency has grown nearly to 50%, a level seen in the early 2000s, according to Bank for International Settlements. 

The greenback's dominance means that the problems in the US can quickly spread across the globe. That happened in early March when the coronavirus-induced stress in the US credit markets injected stress in the global funding markets. 

Key quotes (Source: Bloomberg)

The widespread use of the U.S. dollar has benefited participants, but the resulting interconnectedness of the market can also create vulnerabilities

The structural shifts have increased market complexity as well as the speed and scope of stress transmission throughout the global financial system.

The dollar also accounts for 61% of official foreign-exchange reserves and around 85% of all foreign-exchange transactions occur against the greenback.