Japan is the biggest foreign investor in the US$31 trillion Treasuries market, and last month’s joint currency intervention has stirred some concern that US support for the yen — likely aimed at preventing unwanted volatility in US bonds — could erode confidence in dollar reserves. Such an argument assumes the US might try to hinder others from selling Treasuries in the future, Goldman said.

“This seems like quite a leap,” strategists including Michael Cahill wrote in a note. “We are sceptical of arguments that this is negative for the dollar’s reserve status.”

The bank pointed to Japan’s access to the Federal Reserve’s Foreign and International Monetary Authorities (Fima) Repo Facility, which allows foreign central banks to raise dollars against their Treasuries without selling them. It said that highlights a key advantage of the dollar: deep capital markets for building reserves in normal times and access to liquidity during periods of stress.

“We believe Treasury’s actions and the availability and utility of the Fima facility help demonstrate that no one else can come close to competing with the US dollar’s usefulness, network effects, and supporting infrastructure right now,” the strategists added.