The phenomenon of de-dollarization is truly a force to reckon with. Over the decades, many countries have been noted for vying for a multipolar narrative, promoting the usage of local currency to rival the US dollar. They have been doing so to end the dollar hegemony on a global plane, tired of its weaponization and volatile onslaughts. With Trump floating plans of imposing tariffs on imports, the world is now standing at a precipice, deciding whether to ditch this phenomenon or continue to bank on the de-dollarization wave.

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Can Trump Stop De-Dollarization?

President-elect Donald Trump has vowed to end de-dollarization. Trump has issued official orders, imposing 100% tariffs on nations that are ditching the greenback actively. This ordeal is poised to backfire as countries may now actively look for US dollar alternatives to evade the hefty tariff restrictions.

Other than that, the stark US dollar statistics are also adding pressure to the current de-dollarization narrative. For instance, the US dollar’s share in global foreign reserves is falling dramatically. The USD foreign reserve stats were earlier pointing at 79% in 2002, a number that has now toppled down to 59% in 2023.

Similarly, the financial dynamics are now changing rapidly, with a multipolar currency order emerging. This new development is rivaling the US dollar’s prestige, attacking it from all corners. In simpler terms, the global oil trade, which was earlier conducted in dollars, is now available for trade in multiple currencies, showcasing how the US dollar hegemony is falling like broken dominos.

Moreover, the US dollar now has more currency competitors to fight as the world continues to pivot toward the multipolar currency narrative.

“As the US weaponizes the dollar in the Russian and Iranian sanctions, there is increasing desire by other developing countries to seek alternative currencies for trade, investment, and reserves, as well as developing alternative multilateral clearance systems outside of SWIFT,” Shirley Ze Yu, a senior visiting fellow at the London School of Economics, told Al Jazeera.

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10 US Sectors To Take A Hit If Nations Abandon The US Dollar

The dramatic ways in which the US dollar is taking a hit may have a major impact on the US economy. The US economic sectors could take a brutal injury, sustaining major losses if the world decides to ditch the US dollar. These sectors may include arenas such as:

• Global Financial System
• Banking and Finance
• Energy and Commodity Markets
• International Trade and Investment
• Capital Markets
• Consumer Goods and Retail
• Production and Consumption
• Technology and Fintech
• Government and Policy
• Travel and Tourism

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