End of Dollar Empire: How America Weaponized the World's Economy, Dedollarization Is Irreversible

“The greatest threat to dollar hegemony is that Washington might destroy the pillars underlying the currency’s appeal: rule of law, contract enforcement, government transparency, the unquestioned safety of US treasuries.” (Financial Times)

In a recently published article, Financial Times points out several “truths” that were previously regarded as anti-American: de-dollarization is the result of failed Washington’s policies, not the inherent “evil” of China, Russia, or other actors seeking to protect their economic sovereignty. While the entire world has started to point out the hypocrisy of waging economic wars and weaponizing the most valuable asset of the United States, its dollar as the global reserve currency, US policymakers appear to be in denial as the day when an aggressive tariff regime goes into effect is celebratory advertised as “America’s Liberation Day”.

Since access to the dollar system was essential for governments and businesses around the globe, Washington could punish adversaries without firing a bullet by blocking their ability to transact in dollars.

The trend to amplify currency multipolarity is one of many features that accompany the transition from unipolarity to a more balanced global structure. The US's ability to print an endless supply of dollars and export them abroad solidified US monetary hegemony. The decline of trust in the US dollar is a symptom of a much deeper shift that is transforming the world as well as its main actors.