De-Dollarization? Central Bankers Smirk: USD Still Reigns Supreme in 2025

The dollar's throne isn't wobbling—it's just getting polished. Despite the buzz about de-dollarization, central bankers worldwide are doubling down on greenback dominance. Here's why the 'king currency' still wears the crown.

The Illusion of Escape

Every BRICS meeting spawns fresh headlines about dethroning the dollar. Yet 2025's cold hard truth? Over 58% of global reserves still sit in USD—a figure that hasn't budged despite the hype.

Liquidity Wins Every Time

Alternative currencies crash against the dollar's liquidity fortress. When markets panic, traders still sprint to US Treasuries like it's 2008. The 'petrodollar' might be aging, but it's far from retirement.

Crypto's Wild Card

Bitcoin maximalists cheer each central bank gold purchase—but institutional adoption remains stuck in first gear. Until crypto finds stability beyond speculation, it's just the dollar's rebellious younger sibling.

The bottom line? Talk is cheap—especially when denominated in weakening local currencies. The real de-dollarization story begins when alternatives stop being... alternative.

Central Bankers Doubt If De-Dollarization Can Topple the US Dollar

Central bankers gathered for an annual conference in Portugal and the summit included a talk by European Central Bank President Christine Lagarde. She argued that the euro could become an alternative currency to the US dollar but the de-dollarization shift won’t happen quickly. Lagarde explained that it requires extensive financial and trade reforms which Europe is not prepared to handle at this time.

she said, to which British, Japanese, and Korean central bankers agreed.she said. De-dollarization is not a potent weapon against the US dollar as 58% of global reserves are held in the USD.

Challenging your central bank reserves without a solid plan is as good as dropping an axe on your own feet.said Bank of England Governor Andrew Bailey on de-dollarization and the US dollar’s supremacy. Even Bank of Korea Governor Rhee Chang-yong stressed that developing nations are only talking against the USD but are not willing to take action as their GDP could fall drastically.

Chang-yong told the panel. In conclusion, Central Bank heads don’t believe the US dollar can be dethroned and its supremacy remains intact.