De-Dollarisation: Why The Dollar Is King and Where The Danger Lies

Is de-dollarization becoming a reality? Will the king dollar lose its reign? A number of news outlets are raising this question: is the U.S. dollar losing its dominance?

The dollar is heading for its worst month in a year, barreling toward a 3.7 percent loss this month against six major currencies.

At the same time, the BRICS group of major emerging economies—Brazil, Russia, India, China and South Africa—want to create a common currency for trade and investment between each other, to reduce their vulnerability to the dollar.

The dollar share of official foreign exchange reserves has fallen to a 20-year low, and on top of all this, more and more countries are trading using their own currencies. The People’s Bank of China and the Saudi Central Bank recently signed a currency swap agreement worth nearly $7 billion, and China already has currency swap agreements with dozens of countries. The Chinese Yuan’s share of global transactions has now risen from almost nothing 15 years ago to 7 percent.

The U.S. dollar has dominated as the global reserve currency for almost 80 years. If the world moves away from trade in dollars, it would pose a huge threat to the standard of living that all Americans are accustomed to. Being entrusted with the global reserve currency status has seen the United States enjoy substantial economic benefits and international influence. The displacement of the dollar from its position as the predominant reserve currency worldwide would have great consequences for financial markets, the global economy, and geopolitical landscape.

How likely is de-dollarization to happen? What form could it take and what would replace the dollar? How would a world independent from the dollar look?

Guests, currency analyst at FXStreet Joseph Trevisani and Epoch Times business journalist and filmmaker Kevin Stocklin, join us to discuss the potential impacts and likelihood of de-dollarization.

ntd newsletter icon
Sign up for NTD Daily
What you need to know, summarized in one email.
Stay informed with accurate news you can trust.
By registering for the newsletter, you agree to the Privacy Policy.