De-Dollarization Accelerates, Global Finance Enters New Era

The world is witnessing a significant shift in global finance, marked by de-dollarization, the decline of the US dollar's influence as a reserve currency. This trend has accelerated faster than expected, affecting government policies and sending shockwaves through investors and financial markets.

The process began with the Bretton Woods Agreement in 1944, where the US dollar was established as the world's primary reserve currency. However, this structure started to crumble after the Nixon Shock in 1971, which led to a fiat currency system where currency pairs fluctuate based on supply and demand.

The petrodollar era, where oil trades were settled exclusively in US dollars, further entrenched the dollar's dominance. But now, countries like Saudi Arabia are signaling openness to accepting energy payments in non-dollar currencies, exacerbated by tense geopolitical situations.

According to JP Morgan, the share of US dollars held in global foreign exchange reserves has dropped from 71% in 1999 to just 57% in 2025. Central banks worldwide are diversifying their risks, leading to a surge in gold purchases. In 2025, total gold demand reached an all-time record of 5,002 tonnes.