---
title: "Triffin Dilemma Explained | Model Diplomat"
description: "The Triffin Dilemma is the conflict a reserve-currency issuer faces between global liquidity and domestic currency confidence, impacting economic policy."
url: "https://modeldiplomat.com/learn/glossary/triffin-dilemma"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Triffin Dilemma is the structural conflict a reserve-currency issuer faces between supplying global liquidity through deficits and maintaining domestic confidence in its currency's value.
- Who formulated the Triffin Dilemma and when?
- How did the Triffin Dilemma contribute to the end of Bretton Woods?
- What solution did Triffin propose, and was it implemented?
- Does the Triffin Dilemma still apply under floating exchange rates?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

The Triffin Dilemma is the structural conflict a reserve-currency issuer faces between supplying global liquidity through deficits and maintaining domestic confidence in its currency's value.

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In March 2009, PBoC Governor Zhou Xiaochuan invoked the Triffin Dilemma to argue that an expanded SDR should replace the dollar as a "super-sovereign" reserve currency after the global financial crisis.

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