Author page: Julia Kravchenko

Dedollarization of the Global Economy: Trends and Perspectives

DOI: 10.33917/es-4.190.2023.40-47

The quantitative indicators of dedollarization in the global economy are given. It is revealed that in the short-term the measures to abandon the U.S. dollar may have a limited impact on the global foreign exchange market, but in the longer-term the demand for the U.S. dollar may weaken. The implementation of transactions directly by countries on a bilateral basis using national currencies will thus make the global foreign exchange market more balanced. It is found that the development of dedollarization process is influenced by three major factors: the U.S. dollar’s usage as an instrument of sanctions pressure; the strengthening of the U.S. dollar; the emergence of new technological innovations. The article concludes that the development of dedollarization process along with the creation of new international payments mechanisms in the middle-term will continue to reduce the role of the U.S. dollar in the modern international monetary and financial system.


1. Georgiadis G., Le Mezo H., Mehl A., Tille C. Fundamentals vs. Policies: Can the US Dollar’s Dominance in Global Trade Be Dented? Working Paper Series No. 2574. Frankfurt am Main: ECB, 2021, 47 p., available at:

2. Jamrisko M., Carson R. Suddenly Everyone Is Hunting for Alternatives to the US Dollar. Bloomberg. 21.12.2022, available at:

3. World Currency Composition of Official Foreign Exchange Reserves. IMF, available at:

4. Arslanalp S., Eichengreen B., Simpson-Bell Ch. Dollar Dominance and the Rise of Nontraditional Reserve Currencies. IMF. 01.06.2022, available at:

5. China to Use Shanghai Exchange for Yuan Energy Deals with Gulf Nations — Xi. Reuters. 09.12.2022, available at:

6. OTC Foreign Exchange Turnover by Currency. BIS, available at:

7. Mazumdar R. India Seeks to Globalize Payment Systems, Keep Processing Local. Bloomberg. 17.06.2022, available at:

8. The Dollar Is as Strong as Ever. Isn’t It?. The Economist. 08.09.2022, available at:

9. Weinland D. China is Rapidly Rolling out Its New Digital Currency. The Economist. 18.11.2022, available at: