Moneycontrol Pro Panorama | The high cost of weaponising the dollar - Moneycontrol.com
· Business · Moneycontrol
The weaponisation of the US dollar through extensive financial sanctions and trade restrictions has accelerated global de-dollarisation efforts. Central banks worldwide are increasingly diversifying their foreign exchange reserves away from the greenback to insulate their economies from geopolitical shocks. This strategy risks eroding the long-term dominance of the US currency in global trade and financial settlements. Major economies are establishing alternative bilateral payment mechanisms to bypass Western-controlled financial networks like SWIFT. Consequently, the reliance on the US dollar faces mounting structural challenges that could reshape international finance.
Why it matters
This trend directly impacts global trade dynamics, currency valuations, and the stability of emerging market economies as they navigate shifting financial alliances.
Read the original report — Moneycontrol
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