Rabobank’s Jane Foley Predicts Sustained Trend of De-Dollarization in Global Markets

Jane Foley, a senior strategist at Rabobank, has highlighted the ongoing shift away from the US dollar in international trade and reserves. She emphasizes that geopolitical tensions, diversification strategies by central banks, and the rise of alternative currencies will likely accelerate this trend. Foley notes that while the dollar remains dominant, its share in global reserves has been steadily declining as nations explore bilateral currency agreements and digital assets. This movement reflects broader efforts to reduce dependency on USD-denominated systems amid evolving economic alliances.

Rabobank: De-Dollarization Trend Is Here To Stay & Will Continue

Rabobank’s FX Strategy head Jane Foley explained in a recent interview with Bloomberg that de-dollarization will continue. Foley stressed that the US cannot stop the initiative as developing nations have made up their minds to de-dollarize. They are now diversifying their reserves with gold and other currencies while simultaneously cutting back on the US dollar.

said Foley, cautioning that the USD’s reserve currency status is under threat. However, she explained that the US dollar is surviving because no real alternative currently exists in the market.she said.

Moreover, when a new currency or a basket of currencies becomes an official form of payment, the USD could decline. It is now only a matter of time before de-dollarization gets a stronger grip on the global financial markets. The next decade or two could rewrite the rules of the financial sector where the US dollar could remain in the back seat.