JPMorgan Sounds the Alarm: How De-Dollarization Could Reshape Global Markets in 2025
The dollar's dominance is under siege—and Wall Street's finally paying attention.
Greenback on the ropes?
JPMorgan's latest analysis reveals what crypto traders knew years ago: the world's dumping USD reserves faster than a hot potato. Central banks now hold record-low dollar allocations while stacking gold and—you guessed it—digital assets.
BRICS nations aren't playing nice
China's digital yuan rollout accelerates as Brazil and India settle trades in local currencies. Even Europe's flirting with euro-denominated oil contracts. Meanwhile, the Fed keeps printing like it's 2020.
Crypto's silent coup
Bitcoin's becoming the Switzerland of reserve assets—neutral, decentralized, and immune to political tantrums. Stablecoins? They're eating correspondent banking's lunch at 1/100th the cost.
The dollar won't die tomorrow. But the writing's on the blockchain—and Jamie Dimon's team just framed it in gold leaf. (Funny how banks only see trends after they've moved markets...)
How JPMorgan Sees De-Dollarization Driving BRICS, Dollar, and Market Change
JPMorgan de-dollarization research is documenting structural changes that go way beyond normal market cycles. The bank’s Global Macro Research division has been tracking how BRICS de-dollarization initiatives are creating real alternatives to dollar-dominated systems. Well, it’s happening faster than expected.
Luis Oganes, head of Global Macro Research at JPMorgan, said:
Commodity Markets Lead the Charge
The impact of de-dollarization is most visible in energy markets right now. Traditional pricing mechanisms are being challenged in ways we haven’t seen before. Russian oil exports are increasingly being settled in local currencies, while countries are actively pursuing alternatives to dollar-based transactions.
Natasha Kaneva, head of Global Commodities Strategy at JPMorgan, stated:
Some Indian companies have started paying for Russian coal imports in yuan, even without Chinese intermediaries involved. Bangladesh also recently decided to pay Russia for its nuclear power plant in yuan. This shows how the global currency shift is gaining momentum.
Central Bank Reserves Show Clear Patterns
The JPMorgan US dollar future analysis reveals declining foreign exchange reserve holdings. Central banks are diversifying away from dollars at a pace that’s worth paying attention to. Emerging markets have actually doubled their Gold reserves share from 4% to 9% over the past decade.
Meera Chandan, co-head of Global FX Strategy at JPMorgan, had this to say:
China, Russia, and Turkey have become the largest gold buyers, and this trend has been driving gold prices higher. JPMorgan is forecasting prices could reach $4,000 per ounce by mid-2026.
BRICS Payment Systems Gain Real Momentum
BRICS de-dollarization efforts gained serious momentum at the recent Rio de Janeiro summit. Leaders basically decided to advance alternatives to SWIFT. The New Development Bank, which is headed by former Brazilian President Dilma Rousseff, is developing new financial tools to reduce dependence on Western platforms.
These measures represent what analysts are describing as the construction of an independent financial ecosystem by BRICS countries, and it’s moving from theory into practice.
Market Impact That Can’t Be Ignored
The impact of de-dollarization could fundamentally alter investment returns and bond markets in ways that investors need to understand. JPMorgan de-dollarization research shows foreign Treasury ownership has fallen to 30% from above 50% during the financial crisis.
Alexander Wise, who covers Long-Term Strategy at JPMorgan, stated:
Jay Barry, head of Global Rates Strategy at JPMorgan, said:
The global currency shift continues accelerating as the JPMorgan US dollar future faces structural challenges from coordinated BRICS de-dollarization efforts along with changing central bank behaviors worldwide.
