Central Bankers Dismiss De-Dollarization as Threat to USD Dominance
Global central bankers have downplayed the impact of de-dollarization efforts by developing nations, asserting the U.S. dollar's continued supremacy in international trade and reserves. At a Portugal summit featuring ECB President Christine Lagarde, policymakers agreed that replacing the dollar requires structural reforms beyond rhetorical opposition.
"The euro could theoretically serve as an alternative reserve currency, but the transition timeline extends beyond current political and economic realities," Lagarde noted. Bank of England's Andrew Bailey likened haphazard de-dollarization to "dropping an axe on your own feet," citing the dollar's 58% share of global reserves.
Emerging markets' local currency trade initiatives—spurred by Trump-era policies—have failed to dent dollar hegemony. Bank of Korea's Rhee Chang-yong observed that anti-dollar rhetoric rarely translates into concrete action among developing economies.