The Global Pursuit of De-Dollarization: Assessing the Strength of the Dollar's Reign

The dominance of the US dollar as the world's reserve currency is facing challenges due to a combination of factors. Western-led sanctions against Russia have prompted countries to seek alternative currencies for trade, such as the Chinese yuan and bitcoin. Additionally, concerns over the outsized influence of US monetary policy and the strong USD being expensive for emerging nations have fueled the desire for de-dollarization. Furthermore, the diversification of global trade and the rise of the shale-oil industry have put the petrodollar at risk, potentially leading to a shift away from the USD as the global reserve currency.