The US dollar is heading for its worst year in modern history, down over 7% so far, with forecasts of another 10% drop.

While a weaker dollar can help US exports, it raises import costs and inflation risks.

Despite talk of “de-dollarization” through gold purchases and China’s currency push, no real alternative has emerged to replace the dollar’s global role, Semafor has reported.

Historically, major dollar declines have triggered instability, like in 1973 when the US left the gold standard.

Written by B.C. Begley