De-dollarization in 2025 is rapidly advancing as the global flow of capital is not flowing into the US economy. China and several other developing countries are offloading US bonds and treasuries and replacing them with gold. While China, Russia, Brazil, South Africa, and India were the usual preparators, European nation Poland has also joined the league. Just recently, Poland purchased 16 tonnes of gold to diversify its assets in the central bank reserves. The accumulation beat China in terms of volume for April making it the biggest purchase of the month.

Also Read: De-Dollarization: EU at Risk of U.S. Financial Coercion, ECB Pushes Digital Euro

In addition, Reuters reported that global funds through equities, bonds, and US Treasuries are declining as trade wars loom. A portion of global capital from institutional funds and retail investors is now moving toward other countries, currencies, and bonds. This is for the first time that demand for US financial assets is declining as de-dollarization takes hold in 2025. Heightened tensions over trade wars and tariffs are causing a paradigm shift in how investors think and are moving away from owning US assets.

Also Read: Why No Currency Can Replace U.S. Dollar’s Power: IMF Data Is Clear

De-Dollarization in 2025: Confidence in US Assets From Global Capital Declining

brics us dollar de-dollarization
Source: iStock

Unlike previous instances of turbulence in the US economy, this time around and for the first time, global funds are not fully flowing into American assets. “The recent soaring volatility in the US Treasury market marks a watershed event,” said Yang Changjiang, a finance professor at Fudan University. De-dollarization in 2025 is taking shape in different forms and the US needs to address the issue and clip its wings before it starts to completely take off.

Also Read: De-Dollarization: Trade Settlements In Chinese Yuan On The Rise, Reaches 23%

Finance professor Changjiang also stated that China must grab the opportunity to push the Chinese yuan ahead for trade. “This is an opportunity that we must seize,” he said to SCMP News. The usage of Chinese yuan among enterprises has grown from 21.5% in the last quarter to 24% in Q1 of 2025. The development indicates that de-dollarization must be taken lightly in 2025 and Trump needs to address the global issue.

  • De-dollarization
  • US Treasuries