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Bank of England scrutinizes lenders for dollar risk amid Trump worries, sources tell Reuters

Section: Daily Dispatches

By Stefania Spezzati, Jesus Aguado, and Lawrence White
Reuters
Friday, July 18, 2025

LONDON -- The Bank of England has asked some lenders to test their resilience to potential U.S. dollar shocks, three sources said, the latest sign of how the Trump administration's policies are eroding trust in the U.S. as a bedrock of financial stability.

As the leading currency for global trade and capital flows, the U.S. dollar is the lifeblood of global finance.

... Dispatch continues below ...

 


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However, President Donald Trump's break from long-standing U.S. policy in areas such as free trade and defence has forced policymakers to consider whether the emergency provision of dollars in times of financial stress can still be relied on.

While the U.S. Federal Reserve has said that the central bank wants to continue to make dollars available in the financial system, Trump's policy shifts have prompted European allies to reexamine their dependence on Washington. ...

... For the remainder of the report:

https://www.reuters.com/sustainability/boards-policy-regulation/bank-england-scrutinizes-lenders-dollar-risk-amid-trump-worries-sources-say-2025-07-18/

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