Goldman Sachs Warns: De-Dollarization Accelerates – Here’s What’s Next for Global Finance

The dollar's dominance is cracking—and Wall Street's sharpest minds are scrambling to adapt.

De-Dollarization Goes Mainstream

Goldman's latest forecast paints a stark picture: central banks and corporations are dumping USD reserves faster than expected. The fallout? A free-for-all in currency markets—with Bitcoin, commodities, and even gold surging as hedges.

Crypto’s Quiet Coup

While bankers debate ‘stablecoin frameworks,’ Bitcoin’s monthly institutional inflows just hit a 2025 high. No permission needed.

The New Rules

Forget ‘risk-on/risk-off.’ The playbook now is ‘USD-off’—BRICS trade blocs, CBDC pipelines, and that one JP Morgan analyst still insisting this is a ‘temporary rebalancing.’

One thing’s clear: when the dollar stumbles, the financial elite trip over themselves to sell you the next ‘safe haven.’ (Spoiler: their fees stay the same.)

How Goldman Sachs Sees US Dollar Risks and De-Dollarization Trends

Goldman Sachs Identifies Structural Dollar Weaknesses

The Goldman Sachs de-dollarization analysis reveals some fundamental issues that are driving their bearish outlook right now. Their Goldman Sachs dollar forecast in 2025 points to America’s massive $1.1 trillion current account deficit as a critical vulnerability that requires enormous foreign capital inflows just to stay stable.

Jan Hatzius, Chief Economist and Head of Global Investment Research at Goldman Sachs, explained:

The Goldman Sachs dollar overvalued depreciation assessment actually goes beyond just cyclical factors, and it focuses on structural risks including Fed independence concerns along with foreign investment challenges that are becoming more apparent.

Reserve Currency Diversification Accelerates

Goldman Sachs de-dollarization research shows that central banks have been reducing their dollar exposure as the currency’s global reserve share drops to around 58%. The Goldman Sachs US dollar downgrade analysis reflects broader shifts away from dollar dominance that are happening across multiple regions right now.

Hatzius also explained the Core challenge they’re seeing:

European fiscal stimulus and competitive Chinese AI developments have actually challenged the “There Is No Alternative” narrative, with fund flows increasingly favoring non-US assets in recent months.

Extended Weakness Period Expected

The Goldman Sachs dollar forecast in 2025 suggests prolonged weakness rather than temporary fluctuations, which is quite different from what many expected. This de-dollarization warning contrasts sharply with the dollar’s 25% real appreciation over the past decade.

Goldman Sachs describes the current situation using what they call a telling metaphor. Hatzius described the US dollar as:

The Goldman Sachs dollar overvalued depreciation analysis indicates structural changes that could persist for years ahead, with their models showing continued overvaluation across multiple frameworks that they use for currency assessment.