DID Press: Joint research by scholars from the Universities of Edinburgh, Warwick, and the European University Institute in Florence indicates that the long-standing dominance of the US dollar in the global economy is facing growing structural challenges.
The study argues that during Donald Trump’s presidency, aggressive and unpredictable economic policies significantly weakened dollar’s most critical asset: global trust. Rising US public debt, political pressure on the Federal Reserve, and the extensive use of financial sanctions have pushed many countries to seek alternatives to dollar-based systems.
This shift is no longer limited to traditional US rivals such as China. Even long-time American allies in Europe are increasingly pursuing greater financial autonomy and reducing reliance on the dollar.
According to the researchers, the global economy is entering a transitional phase, moving away from a unipolar financial system toward a more diversified and multipolar order.
Central banks are already responding by reducing the dollar’s share in foreign exchange reserves while increasing investments in gold and alternative currencies.
Although these changes are gradual and largely quiet, they point to a fundamental realignment of the global financial architecture—one in which the dollar is no longer the sole dominant force.