Archive · 19 Nov 2025
Dollar's Dominance Wanes Amid Global South's Loss of Faith
The dollar is losing its global dominance because countries like China and those in the Middle East are investing less in US debt and more in other places.
This is happening because of US policies, like putting tariffs on other countries and using the dollar as a weapon.
As a result, the dollar's share in global reserves is decreasing, which could lead to higher borrowing costs for the US and less power to influence other countries.
Global South losing confidence in US Dollar due to policies
China's flexible exchange rate reduces dollar hoarding
Gulf nations invest less in US Treasuries, more in risky assets
Dollar's share in global reserves fell from 70% to less than 60%
Consequences include higher US rates and reduced statecraft utility
- Who
- Countries like China and those in the Middle East
- What
- Invest less in US debt and more in other places
- When
- Over the past few decades
- Where
- Globally
- Why
- Due to US policies and the rise of competitors like China
Pro-US Dollar
Anti-US Dollar
Dollar's strengths
Pro-US Dollar
World's biggest economy, deepest financial markets, and strongest military
Anti-US Dollar
None mentioned in the articles
Dollar's role in global trade and reserves
Pro-US Dollar
Still the world's dominant currency in many measures
Anti-US Dollar
Dollar's share in global reserves is decreasing
- Peak dollar share in global reserves
- Over 70% at the turn of the century
- Current dollar share in global reserves
- Less than 60%
- China's reserves peak
- 2014
- Gulf's trade surpluses since 2017
- Almost $800 billion
- China's reserves in 2025
- 3.3 trillion
