Dedollarization" remove Looms: Trump's "Aggressive" Policies Threaten the Dollar's Position
Dedollarization" remove Looms: Trump's "Aggressive" Policies Threaten the Dollar's Position
Report by Abdo Boghail
13/4/2025
At a pivotal moment in history, the world stands on the cusp of a radical shift in the global financial system. The erratic US President Trump, with his "aggressive" trade policies and reckless economic adventures, is igniting a fierce war over the US dollar's status as the global reserve currency. As Trump continues his erratic and provocative policies, confidence in the greenback is gradually eroding, and signs of a decline in its central role in the global economy are looming.
Warnings are being issued by major economic institutions, led by the International Monetary Fund, which clearly indicates a decline in the dollar's share of central bank reserves from more than 70% in 2000 to less than 60% in recent years. This decline is not just a number; it is an indicator of a profound geopolitical and economic shift, as countries around the world move toward diversifying their reserves and seeking alternatives to the dollar, most notably gold and the Chinese yuan.
China, a rising economic power, is seizing this golden opportunity to accelerate the pace of "de-dollarization" and develop a digital currency to replace the dollar, in cooperation with other countries, to bypass the US-dominated SWIFT system. This bold move reflects Beijing's determination to change the balance of power in the global financial system and break the dollar's monopoly.
The Brookings Institution is sounding the alarm, warning of three major challenges threatening the dollar's dominance: the excessive use of economic sanctions, the worsening US deficit and public debt, and the rapid development of financial technology. Together, these challenges pose an existential threat to the dollar and open the door to a multipolar global financial system where currencies compete for influence and power.