For many years, the US Dollar was not just a currency, but the backbone of the global economy. Everything from energy trade to debt instruments, from foreign exchange reserves to international payments was measured in dollars. But now there is a silent challenge to this undisputed sovereignty. Economists describe this process as “de-dollarization.” In other words, countries are looking for ways to reduce their dependence on the dollar.

There are not only economic but also political reasons behind this change. The US, especially with the sanctions it has implemented in recent years, has transformed the dollar from a mere means of payment into a political pressure mechanism. The financial sanctions implemented after the Russia-Ukraine war have made many countries ask the question, “How safe are we really in the dollar system?”

The steps taken by China in this regard are quite remarkable. China has invested the dollars it has accumulated over the years thanks to its export surplus in US bonds. But this picture is changing. US bond assets, which were at $1.3 trillion in 2011, have decreased to $850 billion in 2023. This is not just a technical adjustment, but also a strategic change of direction. China is now increasing its gold reserves instead of dollars, encouraging trade in yuan, and establishing alternative payment systems such as the digital yuan.

Similarly, the dollar’s ​​share of global foreign exchange reserves is also declining. In the past four years alone, central banks have withdrawn nearly $1 trillion in dollar reserves from the system, down from 71% in 1999 to 59% today. In the same period, central banks have purchased more than 1,000 tons of gold—the largest annual purchase ever.

There are also notable changes in energy trade. Countries such as China, India, and Saudi Arabia now tend to pay for oil in local currencies or alternative currencies such as yuan. Russia has completely excluded the dollar from its energy trade with China after Western sanctions. 85% of trade between Brazil and China is now directly in local currencies. In other words, the dollar is no longer the sole instrument for all transactions.

This transformation does not completely exclude the dollar from the system. Although the dollar is still the most liquid currency and the safest haven in times of crisis, it is no longer without alternatives. Investors have begun to prefer euros, gold, yuan and even digital currencies instead of American bonds. This is pushing the dollar's long-term leadership towards a more multipolar structure. Countries and investors who recognize this transformation early on seem to be the winners of this change.

The dollar's global leadership is no longer unshakable. The transition to a more multipolar financial structure has begun. This transformation will take time, but it does not seem to be reversible. The winners are always those who read the change in time, and this change has already begun.

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