The Bank of England has joined the ranks of European regulatory agencies and issued a warning on the risk of the US dollar

According to three sources, the Bank of England has requested some banks to test their ability to withstand potential shocks to the US dollar, the latest sign of how the Trump administration's policies are eroding people's trust in the US as the cornerstone of financial stability. US President Trump has broken the long-standing policies of the United States in areas such as free trade and defense, forcing policymakers to consider whether emergency provision of US dollars can still be relied upon during times of financial pressure. A source familiar with the matter said that following similar requests from European regulators, the Bank of England has asked some banks to evaluate their US dollar financing plans and their level of dependence on the US dollar, including short-term demand. Another source said that in recent weeks, a global bank headquartered in the UK has been required to conduct internal stress tests, including the possibility of a complete depletion of the US dollar swap market. One of the sources said that given the dominant position of the US dollar in the global financial system and banks' dependence on the US dollar, no bank can withstand such a shock for more than a few days.