UBS Warns: Dollar’s 10% Plunge Exposes De-Dollarization Tsunami—Is This the End of Greenback Dominance?

The dollar's looking shaky—and UBS just pulled the fire alarm. A 10% nosedive isn't just a correction; it's a flashing neon sign saying 'exit strategy' for global markets.

De-Dollarization Goes Mainstream

Central banks are quietly swapping reserves like hot potatoes. Gold? Up. Yuan? Creeping. Crypto? Don't even get Wall Street started. Meanwhile, the Fed's printing press is starting to sound like a broken record.

Currency Wars 2.0

This isn't your grandpa's weak-dollar cycle. BRICS nations are building alternative rails while Treasury secretaries sweat through their dress shirts. The real kicker? Even crypto maximalists didn't predict fiat would eat itself this fast.

Bonus jab: Nothing unites the world like watching bankers rediscover 'risk' at the worst possible moment.

De-Dollarization Taking Further Hold

The dip in the US dollar’s dominance has put a serious question mark on the greenback. According to UBS, harsher-than-expected US tariffs have deteriorated ““

UBS also sees substantial challenges to the US dollar’s role as a “safe-haven.” To make matters worse, the bank does not see the dollar recovering anytime soon. The report states, ““

The report further notes that previously, the US government was spending significantly even during high-interest rate periods of restrictive monetary policies. UBS does not expect US government spending to expand as needed. Additionally, the bank is not of the opinion that the Federal Reserve will keep interest rates high. The ongoing trade wars further diminish the US dollar’s position. All factors make the dollar “unattractive” in the bank’s eyes.

UBS’s report further highlights the problems with the US dollar. Add to this the growing sentiment among nations to use local currencies for mutual trade, and we get another de-dollarization recipe.

UBS is one of many institutions that have expressed their worries about the greenback. In a letter to shareholders, BlackRock CEO Larry Fink also put forward a similar sentiment. Fink said that the US dollar’s position as the global reserve will not remain forever. Fink believes other digital currencies, like Bitcoin (BTC), could take the top spot in the future.