Will the USD loose it's kingship? Who will it loose it to?

[wheelz1200]

I was reading on some of the reasons why the USD is king in the foreign exchange market and some of them are;
It is the most traded currency,
It is the foreign reserve currency of many countries etc...

My question is that with the way many powerful and influential countries are now dumping the USD, will it cause a significant reduced trading volume that will make the dollar no longer to be the most relevant currency in the foreign exchange market?

Probably a topic for another section but I don't see the usd drop or increase making much moves over the next couple of years.  Can it fall out of favor, sure.  But when usd sinks so does the other world economies fiat system.  At a certain point you start to see correlation between all the fiat markets.  Either way I'm unsure from a micro view on things why people care all that much about that dynamic.

[umbara ardian]

The future of using USD globally is certain to decline. While there may not be another currency that will replace the dollar, mushrooming alternatives could create a multipolar world. Many countries are realizing that maintaining one or two reserves is not diversified enough. As a result, global central banks are looking at a wider range of assets, including corporate debt, tangible assets such as real estate, and other currencies, to avoid escaping their dependent destiny.

[dimonstration]

My question is that with the way many powerful and influential countries are now dumping the USD, will it cause a significant reduced trading volume that will make the dollar no longer to be the most relevant currency in the foreign exchange market?

BRICS is the main threat for the USD supremacy since it's a group of country that is now more powerful in terms of economical strength. USA is already struggling against China in terms of economic war while BRICS is composed of strong country including China that controls the 23% of the global economy. This is enough to bring down US dollar as dominant currency while inflation will kill more it's buying power in long term. I think BRICS will be the next USD in the future.

[Woodie]

Looking at how BRICS has set itself up in all corners of the world and leaving the USA in the top west alone over there...that kingship is very much threatened! Economically, Politically, Technogically you name it all this amounts to put pressure on the USA, and China,Russia and it's allies aren't playing around as they are aggressive in their business models and growing their influence world over potentially leaving the US powerless!

And to top it off ,cryptocurrencies too seem to be having more influence  on the money markets which honestly doesn't really help fiat as they are kind of being destabilized by them too...but of course their impact won't be seen immediately but in due course this will be out for all to see.

[tvplus006]

BRICS is the main threat for the USD supremacy since it's a group of country that is now more powerful in terms of economical strength. USA is already struggling against China in terms of economic war while BRICS is composed of strong country including China that controls the 23% of the global economy. This is enough to bring down US dollar as dominant currency while inflation will kill more it's buying power in long term. I think BRICS will be the next USD in the future.

I understand the desire of the BRICS countries to create an alternative to the dollar, but it must be remembered that the newly created currency will be provided by the national currencies of the participating countries. And given the inflation rate of the national currencies of these countries against the dollar, the new BRICS currency will not be able to compete.

[South Park]

My question is that with the way many powerful and influential countries are now dumping the USD, will it cause a significant reduced trading volume that will make the dollar no longer to be the most relevant currency in the foreign exchange market?

BRICS is the main threat for the USD supremacy since it's a group of country that is now more powerful in terms of economical strength. USA is already struggling against China in terms of economic war while BRICS is composed of strong country including China that controls the 23% of the global economy. This is enough to bring down US dollar as dominant currency while inflation will kill more it's buying power in long term. I think BRICS will be the next USD in the future.

This is not that simple, the US is a very powerful country with a lot of influence, so even if the BRICS nations are strong it will take more than that to displace the US dollar, after all there is no way to replace the US dollar without fundamentally changing the way the world economy works, and this means a huge economic crisis, so BRICS nations do not want this, and at best what they can do is to position themselves in order to take advantage when that crisis comes.

[Reatim]

In the last 10 years, US dollars in foreign reserves account for slightly more than 70% of the total foreign reserves, but down to 60% as of this year. In more decades ago, US dollar did not account for up to 60%.  The second reserve currency is Euro which accounts for 20%.


https://realeconomy.rsmus.com/why-the-dollar-remains-the-worlds-reserve-currency/

if that is the ratio from USD against the next most used currency(Euro) then I'm sure that we will never see that changing in the next coming years as USD stays strong holding its number 1 position in terms of most used currency worldwide, and those dumping that OP is calling is just a small part of what to come .

https://crsreports.congress.gov/product/pdf/IF/IF11707

and also we can see even in crypto market that USDT is the most used currency in terms of exchanging their precious coins into fiat so yes it will remain this for another long years , don't know where OP find this concern actually.

[sana54210]

BRICS is the main threat for the USD supremacy since it's a group of country that is now more powerful in terms of economical strength. USA is already struggling against China in terms of economic war while BRICS is composed of strong country including China that controls the 23% of the global economy. This is enough to bring down US dollar as dominant currency while inflation will kill more it's buying power in long term. I think BRICS will be the next USD in the future.

This is not that simple, the US is a very powerful country with a lot of influence, so even if the BRICS nations are strong it will take more than that to displace the US dollar, after all there is no way to replace the US dollar without fundamentally changing the way the world economy works, and this means a huge economic crisis, so BRICS nations do not want this, and at best what they can do is to position themselves in order to take advantage when that crisis comes.

That's true, I do not think that USA will let those nations grow that easily and establish some instability in those nations to make sure that they are not growing all that much. Just look at Brazil, they tried their best hand on the elections there, the nation was in a lot of turmoil because of the elections and anyone who thinks that USA had nothing to do with it is funny, of course they played a part there.

So, they will do their best to keep those nations down as much as they can, and of course that will lead to USD keeping its power and never losing it. That's at least what they are trying and I am sure that they will achieve it one way or another as well. It is not that simple, but it will be possible after a while.

[goaldigger]

My question is that with the way many powerful and influential countries are now dumping the USD, will it cause a significant reduced trading volume that will make the dollar no longer to be the most relevant currency in the foreign exchange market?

BRICS is the main threat for the USD supremacy since it's a group of country that is now more powerful in terms of economical strength. USA is already struggling against China in terms of economic war while BRICS is composed of strong country including China that controls the 23% of the global economy. This is enough to bring down US dollar as dominant currency while inflation will kill more it's buying power in long term. I think BRICS will be the next USD in the future.

They have been planning for this and I’m sure USA already anticipated this.
As the market fluctuates, its currency is affected too so I think this is just temporary and expect once the economy of US become better, USD dominance will be back. BRICS are composed of powerful countries too, imagine it takes more country just to bring down the USD, it will not be easy for sure.

[South Park]

They have been planning for this and I’m sure USA already anticipated this.
As the market fluctuates, its currency is affected too so I think this is just temporary and expect once the economy of US become better, USD dominance will be back. BRICS are composed of powerful countries too, imagine it takes more country just to bring down the USD, it will not be easy for sure.

Historically the dominant power of the time does not really fall due to external threats and instead it falls because of internal conflicts, neither BRICS or the EU can bring the US down, the US will have to do that work for them, something not really difficult to believe seeing how the US is still printing more and more fiat, so eventually a breaking point will be reached and we could see a major economic crisis all over the world, and only then those countries may try to take advantage of the situation.

[jasonjm]

I was reading on some of the reasons why the USD is king in the foreign exchange market and some of them are;
It is the most traded currency,
It is the foreign reserve currency of many countries etc...

My question is that with the way many powerful and influential countries are now dumping the USD, will it cause a significant reduced trading volume that will make the dollar no longer to be the most relevant currency in the foreign exchange market?

At the moment, it is very early to say that a currency will replace USD in the near future. Looking at global economics and strategies, it is clear that the world is moving toward a new world order. China is aggressively taking over the world trade. One thing is clear that the USD monopoly is going to be challenged. Chinese Yuan might take over as the world's leading reserve currency.