De-dollarization Signs Are Emerging as the Greenback Slides in Currency Reserves, JPMorgan Says
While a near-term rupture in the greenback's dominance is unlikely, divergence away from dollar usage is beginning to show, JPMorgan analysts wrote in a Monday note.
"Some signs of de-dollarization are emerging; this trend is likely to persist but USD should maintain its large footprint for the foreseeable future," they said.
For now, the currency remains "top-of-class" in global transactions, and accounts for 88% foreign exchange volumes, while its share of trade invoicing has remained steady for two decades, between 40% and 50%.
However, this has been set against a decline in the US share of global trade, as the country's exports fell to a record low of 9%.
And the dollar's share of foreign exchange reserves has also dropped.
That trend was accelerated after the West froze Russia's $330 billion in reserves last year for its Ukraine invasion — prompting other nations to decrease their reliance on the US currency.
"De-dollarization is evident in FX reserves where USD share has declined to a record as share in exports declined, but is still emerging in commodities," JPMorgan said.
Source: Markets Insider
(https://markets.businessinsider.com/news/currencies/dedollarization-dollar-dominance-foreign-currency-reserves-chinese-yuan-gold-jpmorgan-2023-6)
Related Reading: U.S. Hegemony Under Attack as Saudis, UAE, India Ignore Threats of Sanctions, Turn to Russia and China
(http://mcguiremitchell32.medium.com/us-hegemony-threatened-as-saudis-uae-india-ignore-threats-of-sanctions-turn-to-russia-china-9473f26a6342)
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De-dollarization Signs Are Emerging as the Greenback Slides in Currency Reserves, JPMorgan