De-dollarization: Is the US dollar losing its dominance? (2025) (jpmorgan.com)

Article summary

The article discusses the potential decline of the US dollar as a global reserve currency, with some arguing it is being deliberately destroyed. The dollar's portion of global forex reserves has fallen from over 70% in the late 1990s to around 60% today. This decline is attributed to various factors, including the rise of alternative currencies and the US government's unpredictable behavior. The implications of this decline are far-reaching, with potential consequences for global trade and economic stability.

Main themes

• De-dollarization
• Global reserve currency
• US economic stability
• International trade
• Monetary policy
• Geopolitics

What commenters say

• The US dollar is being deliberately destroyed, potentially as a result of the US government's actions and policies.
• The decline of the US dollar as a global reserve currency is a gradual process that has been ongoing since the late 1990s.
• The rise of alternative currencies, such as the Euro, is contributing to the decline of the US dollar's dominance.
• The US government's unpredictable behavior is eroding trust in the dollar and driving other countries to seek alternative currencies.
• The decline of the US dollar could lead to a more multipolar world, with several major currencies competing for dominance.
• The US dollar's decline is not necessarily a bad thing, as it could lead to a more balanced global economy and reduced US trade deficits.
• The US is still a bastion of stability, with a strong economy and a history of paying its debts, and the dollar will remain a dominant currency.
• The use of the US dollar as a tool for monetary penalties and sanctions is driving other countries to seek alternative currencies and reduce their reliance on the dollar.