A world where the U.S. dollar is no longer king is a world that looks very different. More fragmented, less stable, and, according to seasoned observers, a whole lot more painful.
"De-dollarization is a structural shift in global demand for the dollar in reserves, trade and finance," J.P. Morgan's head of Global Macro Research, Louis Oganes, said in a recent note. This thesis means countries no longer feel safe relying on a currency controlled by Washington. And that shift is already visible in central bank reserves, commodity trade, and even bilateral settlements in Chinese yuan, Russian rubles, or Indian rupees. So yes, the dollar's grip is loosening, but don't expect that to happen quietly.
