28 July 2023
The hegemony of the American dollar as the global reserve currency appears to be crumbling, chipped away not by a single competitor, but through a multitude of strategic partnerships and regional initiatives that bypass the dollar entirely. In an alarming development, India and the UAE have recently agreed to use their local currencies for cross-border transactions, an indication of a potential large-scale exodus from dollar-dependency. Furthermore, China’s assertive push to break the dollar’s stranglehold on oil trade through close ties with Saudi Arabia, coupled with discussions between Brazil and Argentina about creating a common currency, paint a dire picture for the future of the dollar. Collectively, these developments signal a seismic shift in the global economy, with the dollar’s dominance hanging in the balance.