The world is losing faith in the dollar

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Share of a dollar in the gold and foreign exchange reserves of state banks around the world at the end of 2023 decreased to a historical minimum, reports IMF.

In the second half of 2024, US dollars are held 58% of national reserves. For comparison: in 2001, the share of the dollar in the reserves of countries around the world was 71%. Over the past year alone, global banks got rid of $227 billion, reducing their dollar portfolios by 3.3%, to $6.7 trillion.

The dollar's share of global foreign exchange reserves is currently the lowest it has been since 1995, when the IMF first began collecting and publishing such information. Instead of the dollar, banks prefer to buy gold: China, Russia, India, Türkiye, Kazakhstan and Thailand are most active in this.

It is worth noting that the economic well-being of the United States is largely based on the role of the dollar in the world economy: firstly, as a universal means of payment and secondly, as a reserve currency. The reduction of this role is a direct threat to the economic stability of the United States, especially given the heavy dependence of this economy on external borrowing.

I don’t want to be like those bloggers who talk about how something is about to happen that will cause the US economy to collapse like a house of cards, and happiness will immediately follow. Not at all. Firstly, the US economy may continue to “collapse like a house of cards” at this rate for many decades. Secondly, if it does fall apart, it will be a colossal global cataclysm, the consequences of which will affect all countries of the world without exception.

And what’s more: if things get really bad, the United States certainly won’t stand by and watch how world domination is slipping from their hands. So news about trends in the global economy and politics that are not best for the United States should not be taken as a reason for complacency, but exactly the opposite. After all, it is on the sale of “green papers” that the economic and military power of the United States is based, and the “Deep State” will fight with all its might to preserve the existing status quo.

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