Washington and Wall Street are worried about ‘de-dollarization’ threat.

MarketWatch/Joseph Adinolfi/4-21-2023

Ramirez cartoon on the declining status of the US dollar as a reserve currency
Cartoon courtesy of MichaelPRamirez.com

“Interest in the topic, according to Mark Sobel, a longtime Treasury official and Chair of the Official Monetary and Financial Institutions Forum and others, is being driven by several developments, including the looming U.S. debt-ceiling battle in Congress, a China-brokered deal between Saudi Arabia and Iran as well as Beijing’s ‘no limits’ partnership with Moscow, and growing unease abroad about Washington’s dominance over the global financial system.”

USAGOLD note: There is concrete evidence of de-dollarization. In 2022, the US dollar’s share of global reserves went from 55% to 47% – ten times the average annual pace of erosion, according to Eurizon. That is difficult to ignore. (Please see last Friday’s Daily Gold Market Report for more information.) Exante’s Jens Nordvig says “De-dollarization is one of the biggest things that our institutional clients are looking at.”

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