US Government Shutdown Fuels Anti-Dollar Trade
Threats of a US government shutdown are helping to drive already accelerating anti-dollar trading, warns the CEO of financial advisory giant deVere Group.
The warning from Nigel Green comes as Washington faces a looming partial shutdown that could begin at 12:01 a.m. Eastern Time on Saturday if lawmakers fail to pass a funding package.
It puts more than $1.2 trillion in federal spending at risk and threatens funding for major departments including Defense, Treasury, State, and Health and Human Services.
A shutdown would trigger widespread federal furloughs, disrupt official economic data, stall government contracts, and force essential workers to operate without pay, compounding macro uncertainty and lifting risk premiums in global markets.
He argues that shutdown threats undermine the perception of US assets as the global benchmark for safety.
The chief executive points to the scale and frequency of fiscal confrontations in Washington as a structural issue for the currency.
He highlights how shutdown episodes inject uncertainty into the macro outlook.
He adds that the current standoff around immigration enforcement and federal agency funding deepens the sense of institutional fragmentation.
Nigel Green stresses the fiscal implications of repeated shutdown threats.
He links shutdown brinkmanship with broader diversification trends among global reserve managers.
Central banks have been reducing dollar reserves in favour of gold and other currencies for years. Political shocks accelerate that process by reinforcing the perception of US political risk.
Nigel Green also connects shutdown risk to monetary policy expectations.
He argues that the current environment encourages capital to seek alternatives.
Nigel Green cautions that repeated shutdown threats could have long-term implications for US financial leadership.
The dollar remains dominant and the world's primary reserve currency, yet vulnerability is increasing.
Nigel Green concludes with a stark outlook for policymakers.
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