Offshore U.S. Dollar Deposits Reach Record High Amid Global Uncertainty

Offshore U.S. dollar deposits in banks outside the United States have surged to an unprecedented level, reaching approximately $14.5 trillion. According to NS3.AI, this marks an increase of over 220% compared to the beginning of the century. Several factors may be contributing to this rise, including heightened safe-haven demand during the US-Iran conflict and the Federal Reserve's decision to maintain interest rates following the April FOMC meeting.