Chart of the Day: Allocated and Unallocated Foreign Reserves
To give you the gravity of the situation that a dollar crisis could unfold. Currently, there are about $3 TT in USD foreign reserves. There is additionally another 4 TT dollars worth of foreign reserves which have not been allocated. These could be held in British Pounds, Australian Dollars or Brazilian Reals, but are marked in USD.
The countries that have unallocated foreign reserves either chose to deliberately withold this information or they have yet to update their records. It would be conservative to assume about 50% of those unallocated reserves in US dollars. It is safe to assume that our money supply has increased by about $3.5 TT in the last ten years just on account of overseas reserves at foreign central banks.
As those dollars are pulled out of circulation and are held in reserves, imagine the inflationary impact of another $5 TT dollars flooding the market in the unthinkable event that the world suddenly were to drop the dollar as the defacto world currency. It would be a 50% increase, and a 33% devaluatin overnight.