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world1d ago
Trump is accelerating the world’s slow drift from dollar dominance | Heather Stewart
- Trump’s Iran strikes are described as adding to instability and a sense the US operates outside global norms, fueling a complex currency outlook.
- Analysts see a trend toward a more complex, multipolar system as the dollar’s global dominance loosens gradually.
- Global central banks are quietly shifting away from the dollar, with reserves share dropping from 71% in 2001 to 57% last year.
- The ECB aims to bolster euro liquidity to help avert emergency firefighting and support euro viability.
- The BRICS bloc is discussing financial linkages and central bank digital currencies as tools to bypass US-dominated settlement systems.
- US debt dynamics and waning trust in US institutions could raise borrowing costs if the dollar loses its appeal.
- Investors still flock to US Treasuries in times of fear, even as the dollar weakens.
- Trump’s administration is cited as a driver of de-dollarisation through chaotic policy and sanctions.
- Digital and technological tools are helping speed up settlements and reduce reliance on dollar infrastructure.
- Sanctions and freeze tools highlight 'weaponised interdependence,' increasing calls for alternatives to the dollar.
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