(Natasha Kaneva’s post from The JPMORGAN USA on 01 July 2025.)
De-dollarization: Is the US dollar losing its
dominance? Top dollar no more? Learn more about the factors threatening the
dominance of the world’s reserve currency. While the U.S.’s share in global
exports and output has declined, the dollar’s transactional dominance is still
evident in areas including FX volumes and trade invoicing.
On the other hand, de-dollarization is unfolding in
central bank FX reserves, where the share of USD has slid to a two-decade low.
In fixed income, the share of foreign ownership in the U.S. Treasury market has
fallen over the last 15 years, pointing to reduced reliance on the dollar.
De-dollarization is most visible in commodity markets, where a large and
growing proportion of energy is being priced in non-dollar-denominated
contracts.
The U.S. dollar is the world’s primary reserve currency, and it is also the most widely used currency for trade and other international transactions. However, its hegemony has come into question in recent times due to geopolitical and geostrategic shifts.







































