The concept of de-dollarization has been wreaking havoc in the currency space for decades. For as long as one can remember, the concept has taken over the world, gnawing at the USD’s stance as a global reserve currency and occasionally troubling the dollar with its assumptions and notions.

Several analysts were also quick to opine and predict the fall of the USD narrative, adding fuel to this evergreen concept. But how true is this narrative? Is the dollar truly in trouble? Let’s find out.

Also Read: Cryptocurrency Can Never Dethrone The US Dollar, Experts Suggest

“De-Dollarization Is A Myth,” Experts Weigh In


A notable commodities expert, Jeffery Christian, has chimed in on the debate, acknowledging the USD’s evergreen reserve currency status. Christian shared how de-dollarization is nothing but a bad joke that will not have any implications for the dollar whatsoever.

In a recent presentation, CPM’s group commodities chief, Jeffery Christian, was quick to float new opinions, favoring the US dollar. He shared how the concept of de-dollarization in its entirety is a myth and that nobody is ever dumping the US dollar for anything else.

“It’s a myth, and it’s nonsensical, and it’s very persistent. It’s frighteningly persistent. No one is dumping dollars,” Christian shared.

While emphasizing the USD’s global usage and utility, Christian shared how the dollar still accounts for 88% of trade conducted globally daily. He further emphasized that the US dollar accounted for 54% of all foreign reserve exchange reserves in Q4 2023, further strengthening its case and progression.

To become a better macro investor it’s important to understand the crucial role the US Dollar plays in our monetary system.

Once you understand that, it also becomes clear that an orderly de-dollarization is just a fairytale.

Let’s see why.


— Alf (@MacroAlf) July 11, 2023

“There has been a diversification of central bank foreign exchange holdings, but it’s not at the expense of the dollar, and it’s not away from the dollar,” Christian later shared.

Stressing the dollar’s growing power and authority, Christian reiterated how the US dollar’s demise is nothing but a farce prevalent in space.

“People are buying dollars in a much greater volume than they are selling dollars,” Christian said. “De-dollarization is a myth, a joke, nonsense, whatever you want to call it, but you can’t call it a fact and you can’t call it a reality,” the CPM commodities expert weighed.

Morgan Stanley Experts’ Stance on the US Dollar.

The concept of de-dollarization has often been linked with the cryptocurrency vertical’s progression and expansion. Bitcoin is frequently labeled as an alternative to the USD alongside gold, which kept the narrative flowing freely in the space.

However, per James Lord, head of FX strategy for emerging markets at Morgan Stanley, the US dollar is unbeatable and is here to stay for the long haul.

“Which currency would you want to own when global stock markets start to fall and the global economy tends to head into recession? You want to be positioning in USD because that has historically been the exchange rate reaction to those kinds of events.” Lord shared.

The MG expert later reiterated how the USD’s competitors, such as the Yuan and Bitcoin, are not strong enough to compete with the dollar’s supremacy.

Also Read: Inflating US Debt Metrics Will Not Affect the Dollar, Expert Opines

“If I’m holding a crypto coin that rises, say, 10% a month, I’m less likely to use that for trade and instead just hoard it in my wallet to benefit from its price appreciation. Now, reasonable people can disagree about whether cryptocurrencies are going to appreciate or depreciate, but I’d argue that the best outcome for a dominant currency is neither.” as stated by David Adams of Morgan Stanley G10 FX strategy.


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