That's as the federal government must finance a $2 trillion budget deficit this fiscal year, meaning it's already issuing a flood of Treasury debt. "Both moves are an indication that the dollar's status as a reserve currency is not what it used to be," Eichengreen wrote. "Central banks are accustomed to holding foreign reserves in dollars because markets in U.S. Treasury securities are liquid. But by signaling that Treasuries can't be used anytime and anywhere, the U.S. gives investors less of a reason to own them. "This is telling us that the dollar is not the attractive reserve currency it once was.