The US dollar’s 80-year reign as the world’s reserve currency is facing growing challenges from multiple directions, including African revolutionary movements, economic recalibrations in Europe, and counterbalance efforts by Brics nations. As global trust in Washington’s stewardship of the international financial order declines, a transition to a multi-polar monetary world may finally be close.
At the heart of the de-dollarisation movement is Brics – an economic bloc comprising Brazil, Russia, India, China, South Africa, and other nations that have already surpassed the G7 in terms of purchasing power parity. The group has been increasing trade in national currencies, bypassing the need for US dollars. For instance, India and Russia now trade oil in rupees and rubles.
Russia’s invasion of Ukraine has accelerated these transitions. Economist Jeffrey Sachs has commented on Washington’s ongoing “weaponisation” of the dollar through financial sanctions and trade barriers to assert its geopolitical agenda. Nations across the global south are pushing back in a determined effort to reclaim their sovereignty, particularly in Africa where leaders like Ibrahim Traoré of Burkina Faso have announced plans to abandon the CFA franc – a colonial relic tied to the euro.
A potential African currency, shared by west African nations, is being proposed as a symbol of decolonisation. The proposal has gained moral backing from African intellectuals and economists who argue that economic independence is essential for political freedom. This shift is not just about money but also about dignity and direction.
European nations are hedging against the US’s financial dominance, with some countries considering repatriating gold reserves. The fresh moves are linked to Donald Trump’s return to power, which has eroded transatlantic trust. The US continues to run large deficits, with its national debt over $36 trillion, while other nations must earn dollars through exports or debt to interact with the global economy.
Nobel laureate economist Joseph Stiglitz warns that the dollar-based system has become inherently unjust and unstable – especially for emerging economies. Open-ended military aid to Ukraine and Israel further erodes confidence in the US fiscal outlook and the dollar’s value. However, despite growing resistance, over 58% of global reserves still remain in dollars, and its network effect, deep capital markets, and geopolitical leverage are formidable.
The challenge now is whether Washington will reform and share the financial order or cling to outdated privileges until the world has moved on without it. As the post-Covid, post-colonial world demands fairness and equity, de-dollarisation is not a threat but a rebalancing that enacts change in the global south.
Source: https://www.theguardian.com/global-development/2025/jul/16/trust-in-the-us-is-eroding-the-question-isnt-if-the-dollar-will-lose-supremacy-its-when