JP Morgan Drops Bombshell Report: Is the Dollar’s Dominance Really Ending?

The greenback's throne is wobbling—and Wall Street's sharpest minds are taking notes. JP Morgan's latest analysis on de-dollarization hits like a caffeine jolt to the financial system.

Here's what you need to know.

The Silent Currency Rebellion

Central banks aren't just diversifying—they're executing a slow-motion coup against USD hegemony. Gold stockpiles grow. CBDCs multiply. Even petrostates flirt with yuan settlements.

Bankers' Whispered Warnings

JP Morgan's researchers spot the cracks: trade alliances bypassing SWIFT, bond markets flirting with multi-currency settlements. 'Risk mitigation' sounds nicer than 'escape plan.'

The Ironic Twist

Meanwhile, crypto markets smirk from the sidelines—decentralized assets don't wait for permission to disrupt. Bitcoin's 2024 halving already priced in more dollar skepticism than any banker's PowerPoint.

One truth remains: empires fall slowly... until they don't. The dollar's encore might just feature more exodus than encore.

JP Morgan on De-Dollarization and the US Dollar

The bank highlights that developing countries have begun settling commodity trades in local currencies and have sidelined the US dollar. While JP Morgan acknowledges that de-dollarization is real and is growing, the threat is still at its nascent stages. Julia explained that no real alternative currency has appeared yet to replace the US dollar’s dominance on the global stage.

While JP Morgan says the currency wars and de-dollarization exist, it’s a slow drift rather than a direct challenge to the USD’s supremacy. Emerging nations are figuring out how to diversify their Central Bank assets but cannot bank on other currencies. Therefore, they are relying more on Gold than on accumulating local currencies, which signifies that other national currencies are not strong.

Finally, citing de-dollarization, JP Morgan’s Julia Wang recommends international diversification of assets for US-based investors. She added that non-US investors can take long exposure on the US dollar as the comeback could be stronger. The USD made its way to the top every time after a global turmoil and this time is no different.