The International Monetary Fund points out that Europe, Latin America and Asia had started a gradual shift from reliance on the US dollar in 2000 that was disrupted by economic crises. The process of seeking alternatives begins anew as advanced and emerging economies alike are disturbed by America First policies that include tariffs and sanctions. The US dollar accounts for more than 60 percent of foreign-exchange reserves and global trade transactions. “Transition from the US dollar-based environment is possible, but will be slow and the new reality will involve a competition from several pretenders for the status of the dominant currency,” explains Michal Romanowski. The rest of the world has long regarded the United States as a safe haven, and ongoing demand allows the country to refinance its debt at low costs. But US dollar dominance complicates monetary policies for Europe, Iran, Turkey and others. Russia is reducing investment in US debt obligations. China, while moving cautiously in this area, takes steps to position the yuan as an international currency. Romanowski concludes that the world should prepare for a more multipolar currency landscape. – YaleGlobal
https://yaleglobal.yale.edu/content/new-players-dollarized-world
