The currency wars have now intensified, with the US dollar being bitten and gnawed from all nooks and corners. The dollar is currently losing its mettle in the forex market, as new competitors emerge to rattle the USD. The US tariff ordeal has already weakened the US dollar. The fact that the American currency is now at risk of losing its reserve currency status is also an important issue that is gaining traction in recent times. The multipolar currency world is also threatening the US dollar, with other currencies eyeing the reserve status due to the USD’s continued weaponization and increased institutional hegemony. Here’s how the American currency is being dumped globally right now.
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Three Ways Through Which Nations Are Moving Away From The USD
1. Nations Diversifying Into Gold
The price of gold has hit a record high, as nations continue to hold gold in large quantities. The move has weakened the US dollar further as nations continue to stockpile gold amid the volatility posed by the US tariff regimes initiated by President Donald Trump. The metal is touted as the top safe haven asset in times of acute financial distress. As the US continues to embark on aggressive tariff regimens, nations like India and China are stocking up on gold to fight rising economic stress, dumping dollars in the process.
Gold and Bitcoin are now aligning for the first time in months.
Since April 7th, Gold is up over 15% while Bitcoin is up over 12%.
Why is this happening?
Markets are pricing-in US Dollar weakness and more instability.
Bonds are no longer a preferred safe haven. pic.twitter.com/W4z4mryRVb— The Kobeissi Letter (@KobeissiLetter) April 21, 2025
2. Investing in Digital Assets Like Bitcoin
The multipolar world order also supports digital assets like Bitcoin to establish a strong market foothold. Several nations have expressed their desire to diversify into Bitcoin, dumping US dollars to accumulate quick and steady gains in the current volatile times.
JUST IN: Iran says they are reducing their dependence on the US Dollar for regional and international trade.
— The Kobeissi Letter (@KobeissiLetter) April 9, 2023
This morning, France said Europe should reduce dependence on the US.
Meanwhile, Russia, Saudi Arabia and China are now trading with Chinese Yuan.
This is the biggest…
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3. Countries Promoting Local Currency Usage
Several nations, like China and Russia, have long dumped the US dollar to trade in local currencies. Other nations are now actively considering this step to reduce their reliance on the US dollar, referring to its growing volatility and inconsistent stance. As a result, proposals to trade in alternative currencies like the Chinese Yuan and the Euro are gaining momentum.
JUST IN: Russia says China is paying for natural gas using Chinese Yuan rather than US Dollars.
Russia also said that crude oil trade between China and Russia includes settlements in Chinese Yuan.
We have now seen 30+ events challenging the US Dollar this month.
However, the…— The Kobeissi Letter (@KobeissiLetter) April 23, 2023
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