The export driven economies like China or the EU rely on the dollar to weaken their own currencies for competitive trade. Without it, natural FX mechanisms would naturally begin to appreciate their currencies and make their exports uncompetitive.
De-dollarization: Is the US dollar losing its dominance? (2025)
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Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#12The biggest problem of all social sciences is that they measure only what can be measured or is easier to measure. Sorry for the redundancy, but they don't see what is hard to see and, therefore, think it doesn't exist.
I suspect there might be a lot of "de-dollarization" going on in realms that might not be easy to measure. To be specific: it is interesting that crypto-currencies have emerged as the currency of choice for illegal activities.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#13Compromised people and useful idiots within the Trump administration are being persuaded by Russia to destroy the dollar and break up NATO.
Where persuaded is probably "bribed"
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#14The gold :: oil ratio tells quite a tale
https://www.macrotrends.net/1380/gold-to-oil-ratio-historica...
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#15The dollar has lost 13% vs the South African Rand in the past year. Thats an interesting metric for me given how South Africa has decoupled from the US in favor of China and Russia, with a strong anti-Israel stance. And also taking into consideration how the country is still struggling with crime, corruption and uncertainty.
It’s doing to be interesting to see how this plays out as the producers and makers of the world unite, and the EU turns away from the US.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#16What if the goal is to crash/burn and consolidate ownership? This time with the money system?
I mean, it sure looks like the goal.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#17At the risk of sounding like shameless self promotion, I recently wrote about how Zoltan Pozsar predicted this over three years ago: https://philippdubach.com/posts/pozsars-bretton-woods-iii-th...
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#18It's not losing it so much as that it is being destroyed on purpose.
The decline has been gradual. The dollar's portion of global forex reserves has fallen from over 70% in the late 1990s to around 60%. The Supreme Court's ruling on Fed independency is to be watched.
Gradual isn't nearly profitable enough for some people.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#19Interesting related read: https://www.chathamhouse.org/2025/04/us-dollars-role-interna...
And if you feel like something long (pdf): https://www.atlanticcouncil.org/wp-content/uploads/2025/05/A...
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#20If the goal is to make US goods attractive to other countries and to decrease our trade deficit (not saying I agree with this goal), either the dollar has to become fundamentally weaker or the goods have to become more valuable. The latter feels more difficult than the former at this point. However, the side effects of a weaker dollar may not be worth weakening it.
> decrease our trade deficit (not saying I agree with this goal), either the dollar
A direct link exists between a nation's status as the world's primary reserve currency and its tendency to run persistent trade deficits.
This relationship is often described by the Triffin Dilemma, a paradox where the global demand for the reserve currency necessitates that the issuing country consistently supplies the world with its currency, primarily through importing more than it exports.