The potential bursting of the dollar’s prominence could trigger upheaval in international economic relations, according to a deputy chair of the Russian Security Council. In remarks reported by outlets, the scenario was described as a massive explosion with far reaching consequences. The official noted that no party benefits from the US currency quickly losing value or fleeing from markets.
The warning indicated that such an event would inject chaos into global monetary relations, bringing volatility to exchange rates, disrupting trade, and unsettled financial systems across major regions. The dollar’s central role in global reserves and trade means any rapid shift could ripple through commodity prices, borrowing costs, and cross border investment.
“There will be a huge explosion”, one official warned. “It would be such a terrible explosion that it could have dire consequences for everyone.”
“Nobody is interested in the US currency flying away”, the same official stated. “This would bring chaos to international economic relations.”
Another expert in public finance, an associate professor at a leading Russian university, commented that a complete rejection of the US dollar would benefit Russia but should occur gradually. He advocated expanding the use of national currencies in payments with friendly countries to allow a natural transition while maintaining stability.
Earlier analyses had suggested movements in the dollar, euro, and yuan in the coming week, reflecting sensitivity to policy signals, commodity prices, and geopolitical risk.
Analysts note that the dollar’s role as a global liquidity anchor and as the primary settlement currency underpins many markets. A sudden shift would require rapid adjustments across financial infrastructure, including settlement systems, hedging practices, and cross-border financing.
Experts emphasize that any move away from the dollar should be gradual to avoid destabilizing spillovers. A measured diversification of reserve assets and increased use of local currencies in trade could reduce exposure while preserving financial stability.
In the broader context, discussions about de-dollarization have gained attention in several economies as they seek to diversify away from a single reserve currency. The path toward a more multipolar currency system involves cooperation among central banks and careful risk management for banks and businesses.
For policymakers and investors, vigilance is essential. Diversification strategies, robust risk controls, and transparent communication can help cushion the impact if a major shift occurs in currency dynamics. Observers in Canada, the United States, and elsewhere continue to monitor currency regimes and reserve holdings as global financial links adapt to evolving conditions.