Part 7/15:
Yakes highlights the shifting balance of international monetary dominance. The U.S. dollar, currently underpinning approximately 80% of foreign transactions (down from 80% in 2019 to an estimated 56% now), might gradually lose its primacy as other nations seek alternatives amid rising geopolitical tensions and economic de-dollarization.
He discusses scenarios where countries like Russia, China, Iran, and even some South American nations accelerate efforts to reduce dependence on the dollar, trading energy and commodities in alternative currencies or cryptocurrencies. This de-dollarization trajectory could weaken U.S. geopolitical influence and challenge the dollar's status as the world's reserve currency.