The dollar has been the world’s reserve currency since World War II, but a combination of political and economic reasons is slowly chipping away at its supremacy.
Nearly 60% of international reserves are held in dollar-denominated assets, according to the International Monetary Fund. The dollar is also the most widely used currency for trade.
Now, Western-led sanctions against Russia related to its invasion of Ukraine are making other countries wary of potential consequences of crossing Washington.
Some, such as Brazil, Argentina, Bangladesh, and India, are lining up backup currencies and assets — such as the Chinese yuan and bitcoin — for trade and payments.
While the macro-geopolitical environment is spurring countries to seek alternative currencies, there’s long been uneasiness over the dollar’s outsized dominance in global trade and finance.
This de-dollarization talk has come back in waves every few years since at least the 1970s.
Read more at AOL.com
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