Macro Insights Weekly - De-dollarisation update

In the first half of 2024, the global financial landscape witnessed an increase in the momentum of dedollarisation.
Many countries are not looking to decouple from the USD but to reduce reliance on the greenback and other Western reserve currencies.
Dedollarisation is a response to rising geopolitical tensions and the need to mitigate pr]essures on their exchange rates from the domestic policies of significantly large countries.
While the current momentum will not unseat the USD's entrenched role as the world's dominant reserve currency, America has little room for complacency, particularly given its significant budget deficits, which are enlarging its federal debt.
In the long term, the dedollarisation process has implications for global markets, particularly the trend towards a more multipolar currency environment.