Part 10/11:
As these processes unfold, the impact on the global financial architecture could be profound. Increasing utilization of national currencies in international trade and investment could diminish the dollar’s dominance, ushering in a more multicurrency and multipolar financial landscape.
The foundational principle underpinning this shift is that a larger network of trading partners and currencies reduces systemic risks. Countries engaged in diverse trade corridors are more likely to hold a balanced mix of currencies, making bilateral and multilateral settlements smoother and reducing the reliance on a single dominant currency.