The dollar amidst the wave of de-dollarization: why USD maintains its status as the main currency

Amid global efforts to switch to alternative payment methods and reduce dependence on the US dollar, the US dollar demonstrates remarkable resilience. Despite increasing dedollarization initiatives in various regions of the world, the USD remains the undisputed leader in central bank portfolios and international reserves, as confirmed by historical data and current economic realities.

Global Challenges of Dedollarization and the Dollar’s Response Stability

The dedollarization trend encompasses many countries and international organizations. BRICS is actively exploring alternative payment systems, countries are seeking ways to reduce their dollar exposure in external transactions, and political forces openly oppose American currency hegemony. However, as analysts note, such ambitions face fundamental advantages of the USD. The dollar maintains dominance precisely because alternatives currently do not offer sufficiently attractive conditions for global adoption.

Liquidity and Trust: Unassailable Competitive Advantages

The reason for the US currency’s resilience lies in two pillars: unprecedented liquidity and decades-long trust from the global financial community. History shows that during economic crises and financial shocks, demand for the dollar paradoxically increases. Investors and central banks seek USD as the most reliable and safe asset. This creates a self-sustaining cycle: the more the dollar is used, the higher its liquidity, and the higher its liquidity, the more attractive it becomes to market participants.

Why Central Banks Are Resilient to Change

Global reserve banks continue to choose the dollar not out of inertia but from cold calculation. The size, depth, and efficiency of American financial markets are unmatched. Despite the scale of the Eurozone, the euro has not managed to displace the dollar from its number one position. The Chinese yuan and other alternatives continue to develop, but their international acceptability remains limited. Dedollarization attempts are more political gestures than economic realities, as the dollar can only be displaced with a more advanced alternative.

Conclusion: The dollar Adapts, It Does Not Give Up

The dedollarization wave reflects real dissatisfaction with the monopoly position of the US currency; however, the mechanisms of the global economy work in favor of the USD. As long as central banks, international companies, and investors continue to see the dollar as the optimal balance of reliability, liquidity, and accessibility, dedollarization will remain a desirable but distant scenario.