Shifts in Global Currency Use and the Dollar’s Role

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Analysts foresee a gradual shift away from the US dollar in international trade over the coming decade. Recent market conditions have made trading in dollars less attractive, amid signals of a cooling US economy and fluctuations in the American financial sector. This assessment reflects the views of economist Ekaterina Fedyukovich, associated with the Ura.ru network of information portals.

The move away from a single-currency system could unfold over several years rather than as a sudden shift. Countries may seek to streamline their economic ties by reducing dependence on the dollar for cross-border settlements. Observers note that signs of diversification have appeared since 2022 and into early 2023, illustrating a trend rather than a rapid overhaul.

On May 1, Kristalina Georgieva, head of the International Monetary Fund, commented that the global use of the dollar in international settlements is gradually being reduced. Yet a broad alternative is not readily at hand in the short term, leaving the dollar in a dominant but increasingly contested position in world finance.

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