Unclear prospects for de-dollarization: will the dollar lose its status as a global currency?

In recent years, more and more countries have been interested in de-dollarization, which means finding alternatives to using the dollar as a global currency. This is due to a number of factors, including the instability of the US economy and the uncertainty of their foreign policy. However, can we say that the dollar will lose its status as a global currency in the near future?

World Currency Ratings in 2023

CurrencyShare of Central Bank Reserves, %
Other Currencies7.8

Based on this information, it can be concluded that the dollar remains the leader among world currencies, and its share in central bank reserves significantly exceeds that of the euro, which is its closest competitor. However, discussions on de-dollarization continue, which may lead to a decrease in the dollar’s share in the future.

Brazil and Argentina: creating a common currency

Brazil and Argentina are discussing the possibility of creating a common currency. Although this sounds like a step towards de-dollarization, it is more related to deeper integration processes between Latin American countries.

Southeast Asia: discussions on de-dollarization

Discussions on de-dollarization are also taking place in Southeast Asia. However, in practice, this turns into an informal agreement to use local currencies in trade operations.

UAE and India: negotiations on using rupees

The UAE and India are negotiating the use of rupees for trading non-oil commodities. This is more related to the fact that India is a major exporter of rupees, and the UAE is the largest consumer of this currency.

Saudi Arabia: open to trading in other currencies

For the first time in 48 years, Saudi Arabia announced that it is open to trading in other currencies. This may be related to a desire to diversify economic ties with other countries and reduce dependence on the dollar.

Dollar still leads

Despite all these efforts, the de-dollarization process will be long. Today, central banks of different countries hold 59.8% of their reserves in dollars. The euro is in second place, with a share of 19.7%. Other currencies have an even smaller share and today do not pose a serious threat to the US currency.


  • The dollar remains the world’s main currency.
  • The euro is the closest competitor to the dollar and has a significant share in central bank reserves.
  • The rupee receives support from the UAE and India and may increase its share in trading non-oil commodities.
  • The common currency of Brazil and Argentina is still at the discussion stage, but may become a competitor in the future.
  • The Japanese yen and British pound have a minimal share in central bank reserves and do not pose a serious threat to the dollar.

Therefore, it can be said that the dollar still leads, and there are no serious threats to its status as a world currency yet. However, more and more countries are looking for ways to diversify their economic ties and reduce dependence on the dollar and the US. This may contribute to de-dollarization in the long term, but it is not worth putting all hopes on this process.

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