Goldman Sachs: The U.S. support for the yen will not undermine the dollar's position as the primary reserve currency.

Goldman Sachs stated that U.S. support for Japan's efforts to strengthen the yen is unlikely to undermine the dollar's position as the world's primary reserve currency. This seems to be an over-interpretation, strategists including Michael Cahill wrote in a report, We dont believe this will negatively impact the dollars status as a reserve currency. The bank noted that Japanese authorities could utilize the Federal Reserve's "Overseas and International Monetary Authorities repurchase agreement facility," allowing foreign central banks to raise dollars without selling U.S. Treasuries. The report emphasized one of the dollar's core advantages: during normal times, deep capital markets can meet countries' demands for building reserves, while in times of stress, they provide channels for obtaining liquidity. The strategists added, We believe that the U.S. Treasury's actions, along with the availability and practicality of the FIMA repo mechanism, help demonstrate that no other currency currently matches the dollars practical value, network effects, and supporting infrastructure.