The Process of De-Dollarization
For over a half century the US Dollar has been what's commonly known as the
world's reserve currency. It enjoyed its 'reserve currency' status since the WWII, especially through petro-dollars
- oil for dollars.
As the pre-eminent currency, no matter where you travelled in the world, or where
you did business, you could do so with dollars. This made international trade relatively easy and supported the
But over the past decade especially, there has been a growing process of
de-dollarization. One could argue many different reasons why this has been happening, but one of many reasons could
be the use of the dollar as a weapon (US sanctions) and the other growing use and importance of
cryptocurrencies, such as bitcoin and ethereum.
(There are now more than 5000 different cryptos available to purchase!
Although about 1000 of them are considered of any significance.)
|For approximately a decade the process of
de-dollarization has been taking place,
reducing the dollar's reserve currency share to its lowest in 25 years.
Greenback's share has
According to the International Monetary Fund, the greenback's share has
fallen down to 59% of global currency reserves. This is the lowest percentage in the past 25 years.
There is no question that the dollar's importance is sliding down, even if it's
still the most important currency in the world. But, as they say, once you reach the top, all roads lead down. The
dollar's 70-year reign could be coming to an end.
"Concerns around the longevity of the U.S. dollar as a reserve currency have
started to emerge" --- Goldman Sachs
"The U.S. dollar could lose its status as the world's dominant currency"
--- J.P. Morgan
It could be much too soon to dismiss the dollar as the most important
currency. But if you are an investor, or if you have much of your savings or cash reserves in the US dollar, now's
the time to start diversifying. After, with today's technology, things change and happen faster these
Look at the other hard currencies, such
as Euros and Yen. Euros share of currency reserves is now at 21%.
If you are looking for up and coming reserve currencies, the Chinese renminbi is a
growing force, although its current share is only 2.3% in forex reserves. Nonetheless, the yuan is getting more
interest in currency markets in London than ever before.
5 Min. Forecast - 2. April 2021
- Casey Daily News
PS: Be on the
lookout for the creation of the world's fiat currency, to replace all others, by the IMF - International Monetary
Fund. It's called Special Drawing Rights or SDR for short - currency code
Naturally, this proposed "world
money" would be controlled by the elites and guess who's going to pay for it!? And, since IMF's HQ is in
Washington, is this only the case of USD being replaced by SDR, both controlled by the