Has De-Dollarization Begun?

Economics

May 1, 2026

Kaushik Basu

US President Donald Trump’s military adventures, attacks on long-standing allies, and dismantling of institutions like USAID are eroding the trust on which the dollar’s global primacy ultimately rests. The world’s reserve currency may have already begun its long, slow decline.

NEW YORK—As the economic consequences of US President Donald Trump’s war against Iran become evident, policymakers around the world are running out of patience. The recent Spring Meetings of the International Monetary Fund and World Bank in Washington made this abundantly clear, with UK Chancellor of the Exchequer Rachel Reeves lamenting the “folly” of a war that is “not ours.”