Global de-dollarization is not a threat to stability but rather a rebalancing of global monetary dynamics as countries reject an economic system historically tilted in Washington’s favor.
For over eighty years, the U.S. dollar has held the position of the world’s leading reserve currency, established at the 1944 Bretton Woods Conference and reinforced by the United States’ postwar industrial prowess and military influence.
Today, this dominance is increasingly being challenged from various fronts worldwide—from African revolutionary initiatives to economic recalibrations within Europe, and from the collective counteractions of BRICS nations to the geopolitical complexities involving Ukraine and Israel.
The erosion of global trust in Washington’s leadership of the international financial order has hastened a long-anticipated shift toward a multi-polar monetary structure.
The BRICS economic alliance, consisting of Brazil, Russia, India, China, and South Africa, and recently expanded to include Egypt, Saudi Arabia, Argentina, Ethiopia, Iran, and the United Arab Emirates, is spearheading this de-dollarization trend. Now surpassing the G7 in purchasing power parity (PPP), BRICS is increasingly pushing for a reformed global financial system.
Nations within this bloc have begun trading in their own currencies, reducing reliance on the U.S. dollar. For example, India and Russia conduct oil transactions in rupees and rubles, while China and Brazil have developed processes for settling trade in yuan and Brazilian reals. Russia’s exclusion from the SWIFT financial system following its invasion of Ukraine has expedited this transition.
Economist Jeffrey Sachs has criticized the United States for using the dollar as a geopolitical tool through financial sanctions and trade restrictions. In response, countries in the global south are vigorously pursuing economic autonomy.
A quiet yet significant movement is unfolding in Africa, especially across the Sahel region. Influential leaders, such as Ibrahim Traoré of Burkina Faso, have declared intentions to abandon the CFA franc, a currency historically linked to French control and the euro. Traoré has emerged as a prominent voice in the call for economic self-governance, proposing the establishment of a pan-African currency to serve as a symbol of decolonization.
The proposed unified African currency, supported by countries like Mali, Niger, and Guinea, represents more than monetary policy; it signals a decades-long economic revolution. The West African bloc ECOWAS is actively discussing the long-overdue “Eco” currency as a challenge to U.S. and European monetary dominance.
African intellectuals and economists, including Kenyan professor PLO Lumumba, argue that political independence must coincide with economic sovereignty. This transformation is as much about identity and dignity as it is about financial transactions.
Recent calls in Italy and Germany to retrieve parts of their gold reserves from the United States highlight the underlying global uncertainty. Previously, the Bundesbank demonstrated its skepticism by recalling gold during the Obama administration. The potential for a second Trump presidency and his aggressive policies have further catalyzed these precautionary measures.
As the U.S. faces mounting national debt exceeding $36 trillion and annual interest payments surpassing $1 trillion, its reliance on the dollar’s reserve status to finance deficits is increasingly questioned. Unlike other nations, the U.S.’s monetary policy allows it to print dollars freely, maintaining an economic equilibrium others do not share.
Nobel laureate Joseph Stiglitz has repeatedly cautioned against the continuous exploitation of this “exorbitant privilege,” which seems unsustainable. Emerging economies bear the brunt of inflationary pressures resulting from U.S. monetary practices, enduring economic volatility not of their own making.
Ongoing military expenditures in Ukraine and Israel undermine confidence in American fiscal responsibility and the dollar’s stability. These conflicts, supported through deficit financing, amplify doubts about the sustainability of U.S. financial practices.
Despite this, over 58% of global reserves remain dollar-denominated, and nearly 90% of currency exchanges involve the dollar, underscoring its entrenched global presence. However, the strength of any currency fundamentally relies on trust, which appears to be waning. A shift toward a multi-currency global economy with regional financial systems is increasingly plausible.
The critical issue is not if but when the dollar will relinquish its supremacy. As former President Donald Trump proposes steep tariffs on BRICS nations, the path forward for the U.S. depends on whether it will embrace financial modernization or hold onto privileges that the world may soon leave behind.
Initially, the dollar’s dominance was built on U.S. moral authority and industrial strength, but the contemporary landscape has evolved post-COVID and post-colonization. Nations worldwide are redefining economic sovereignty, critiquing a financial system long perceived as biased toward Washington.
In 2025, the persistent conflict involving the Palestinian people has exacerbated global discontent, further tarnishing the U.S.’s moral standing. The de-dollarization movement represents a recalibration of global economic power, not a threat. The global south is no longer petitioning for change; it is materializing it. Continued U.S. intransigence risks forfeiting both its currency leadership and international influence.
As Sachs noted, reliance on force is unsustainable for global leadership. The global community is realigning, each nation asserting its place in the evolving financial landscape.
Source: Original article
