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What is the "Triffin Dilemma"?

The Triffin Dilemma was proposed by Belgian-American economist Robert Triffin in the 1960s to explain the inherent contradictions within the global reserve currency system.

He pointed out:

🗒️  When a country's currency (such as the U.S. dollar) is used globally as a reserve currency, the country must continually supply this currency to the world (through trade deficits or capital outflows) to meet global demand. However, this undermines the currency's credibility and stability, ultimately eroding global trust in it.

In simple terms:

 📒 To serve as the world's currency, a nation must keep printing and exporting money. But the more money it prints, the less valuable it becomes, leading to diminishing trust from others.