The dollar has weakened. Here’s why that actually entrenches its role as the world’s reserve currency

It doesn’t make much sense for the dollar to be as widely used as it is. Sure, the U.S. economy is the largest in the world, but the dollar is on one side of 88% of all currency trades, despite the U.S. accounting for roughly a quarter of global gross domestic product. Countries, most notably China and Russia, also are upset the U.S. is able to wield its currency dominance to sanction government officials across the world. But even as the dollar has fallen 8.5% from the highs of March, according to the WSJ dollar index BUXX, -0.26%, there is still no clear path or even idea on how to replace the dollar’s role in the global financial system. It was only a year ago , an idea that now sounds...