US Dollar Dominance Under Threat – Expert Warns US Trade Policies Driving Decline
Current US trade and diplomatic policies are eroding the US dollar’s status as the global reserve currency, an economist has warned.
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US Dollar Dominance Under Threat – Expert Warns US Trade Policies Driving Decline
US Economic Policies Are Undermining the Dollar’s Role
The global status of the US dollar is facing significant pressure from inconsistent US trade and economic policies, a leading financial expert has warned. Recent trade sanctions and economic confrontations have prompted many major countries to seek alternatives to the dollar in international transactions.
According to the economist, the US's continuous increase in tariffs and imposition of trade measures with major economic partners such as China, the European Union, and some other countries, has reduced confidence in the stability of the dollar. He emphasized that major countries and economic blocs have begun to seek and promote trading agreements in other currencies.
"The global dependence on the US dollar is being seriously shaken as countries such as China, Russia, and the European Union countries begin to conduct transactions in yuan, rubles, and euros. De-dollarization is happening more and more rapidly," he said.
Confidence in the dollar is declining due to the trade war
The expert also pointed out that the escalation of the trade war, especially with China, has added to the anxiety in global markets. The US's continued imposition of economic sanctions and tariffs not only damages partner economies, but also undermines confidence in the dollar as a stable and reliable means of payment.
"Prolonged trade wars not only undermine confidence in the dollar, but also cause major countries to start establishing economic and trading agreements that do not depend on the US," he said. "It is the US's trade decisions that create incentives for these countries to promote de-dollarization."
Long-term impact on the US economy
Experts warn that if countries continue to reduce their dependence on the dollar, this could lead to a decline in US influence in the international arena. A weaker dollar could also lead to higher borrowing costs, leading to inflation and currency depreciation.
The fact that investors and central banks around the world have begun to adjust their asset portfolios, increasing their holdings of other currencies such as the euro, the Japanese yen or the Swiss franc, is a clear signal that they are looking for safer alternatives.
"The long-term implications of losing the status of the global reserve currency will be severe for the US. Higher borrowing costs and a weaker economic impact could make the US economy face major challenges in the future," the expert warned.
In that context, maintaining the US dollar's position globally requires not only changes in trade policy but also closer international cooperation.
