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De-dollarization — whether an enduring trend or a fleeting declaration — reflects a growing determination among emerging powers to reduce global dependence on the US dollar, long the cornerstone of international trade and finance. The initiative seeks to rebalance a monetary system historically dominated by the greenback and move toward a more multipolar order.
According to Dominique Plihon, emeritus professor at the University of Sorbonne Paris Nord, de-dollarization functions as “a kind of economic vaccine against sanctions”: by diversifying trade, certain states can shield themselves from the coercive power of the dollar. Anshu Siripurapu and Noah Berman of the Council on Foreign Relations share this view, noting that the proliferation of US sanctions has prompted many countries to conduct transactions in other currencies.
The Dollar, Pillar of the Global Monetary System
Since the Bretton Woods Agreement, the US dollar has served as the world’s primary reserve currency, held by central banks and used for most international transactions. This status has long granted the United States both economic leverage and geopolitical influence.
However, its dominance is eroding: the dollar’s share of global reserves has fallen from 72 percent in 2000 to 59 percent in 2023. According to Meera Chandan of J.P. Morgan, this decline remains “within historical norms,” with the current level on par with that of the early 1990s.
The Dollar, SWIFT, and Sanctions
The use of the dollar as a sanctions tool — often described as its “weaponization” — has prompted Moscow, Beijing, and Tehran to develop alternatives to SWIFT, the global financial messaging system.
In 2015, China launched CIPS, a cross-border payment system denominated in yuan, which facilitates both the transmission and settlement of transactions. Managed by the People’s Bank of China, the network connects an increasing number of financial institutions across Asia, Europe, and Africa. Meanwhile, Russia has established SPFS, designed to circumvent Western sanctions.
Commodities at the Forefront
De-dollarization is also taking hold in commodity markets, where an increasing share of transactions is conducted in other currencies. Under the impact of sanctions, Russia now sells its oil to India, China, and Turkey in local currencies.
Saudi Arabia is even considering adding yuan-denominated contracts to its oil pricing mechanism. Some Indian companies are already paying for Russian coal imports in yuan, without going through a Chinese intermediary.
According to Natasha Kaneva of J.P. Morgan, this shift benefits emerging economies such as India, China, Brazil, Thailand, and Indonesia, enabling them to purchase commodities at lower prices while settling payments in their own currencies.
Gold: The New Safe-Haven Asset for Central Banks
The trend toward de-dollarization is also evident in foreign exchange reserves, with growing demand for gold. Over the past decade, the central banks of China, Russia, and Turkey have significantly increased their purchases.
The share of gold in emerging market reserves has doubled in ten years, rising from 4 percent to 9 percent, while in developed economies it stands at around 20 percent. This rush into gold has helped support the recent surge in its price.
Can the Trend Be Reversed?
A full return to the dollar seems unlikely. While temporary pauses may occur, currency diversification is now emerging as a key sovereignty strategy.
For countries heavily reliant on the dollar, exiting the system remains risky. It must be gradual and accompanied by structural reforms.
Over the long term, this transformation could reshape global economic power. A J.P. Morgan study published in July 2025 forecasts that the United States will be the most affected, facing a weaker dollar and reduced returns on financial assets compared with the rest of the world.
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