The weak U.S. dollar policy as advocated this week by Treasury Secretary Steven Mnuchin would stop the economic boom in its tracks, noted banking analyst Dick Bove said.

Since Mnuchin made comments Wednesday indicating that the White House prefers a softer greenback, the currency has plunged. Efforts Mnuchin made Thursday to backtrack failed, with the dollar off another 0.5 percent or so against its global competitors in morning trade.

That comes along with a 14 percent or so decline since President Donald Trump took office in early 2017. Trump himself is on record as preferring the weakness as it gives exporters an edge on the global trading stage.

Though the stock market has enjoyed the declining dollar, Bove said the policy over the long term is misguided.

"Foreigners will not fund U.S. debt if the policy of the United States is to degrade the stability of the dollar," Bove, of the Vertical Group, said in a report. "The United States depends on the dollar being regarded as the world's reserve currency."

Bove has been warning for years about the dollar losing its reserve status, which essentially means it is held by global governments and central banks as a safe store of value. The standing also means it can be used universally to pay off debts and trade in commodities.

Continuing to degrade the currency would put the reserve status at risk, Bove said. Should that happen, foreign governments would demand higher yields to hold U.S. debt, which in turn would boost borrowing rates and throttle the administration's hopes for a continued economic recovery and at least 3 percent growth.