The US dollar is facing its worst year since records began, with a decline of over 7% this year. Analysts predict it could fall another 10%. This weakening trend has significant implications for trade and the global financial system. While some see an opportunity for US exports to gain competitiveness, others worry about the impact on imports.
The dollar’s status at the center of global finance is under scrutiny. Despite efforts by central banks to de-dollarize through gold reserves or currency swaps, its dominance remains unchanged. However, this has also led to concerns that a drastic shift could create instability.
Historical data suggests that significant changes in the dollar’s value can have far-reaching consequences. The closest year to 2025 in terms of dollar depreciation was 1973, when President Richard Nixon withdrew the US from the gold standard. Experts warn that big moves in the dollar can lead to moments of chaos.
Source: https://www.semafor.com/article/07/03/2025/the-us-dollar-is-on-track-for-its-worst-year-in-modern-history