If everything rises and falls on leadership[i], then the global economy and international finance rotate around the U.S. dollar. As the world’s leading reserve currency since World War II, the dollar has long dominated international trade and finance. But its role and influence are now increasingly under threat as global power shifts to a multipolar system.
“The dollar is our currency, but it’s your problem” – this famous quote by John Connally, the U.S. Secretary of Treasury under President Nixon’s administration: reflects how the U.S. has long used and abused its currency as a geopolitical weapon. Since 1971, when Nixon delinked the dollar from gold, the foundation of this global hegemony has gradually been declining. While the U.S. benefits from the dollar’s reserve status, non-allies are seeking alternative to the western dominated system. Gold’s prices, for example has surged since the beginning of 2025 to more than $3,360.81 per ounce signaling a shift in investor confidence. Countries across the globe are beginning to rethink an alternative to the dollar-based-financial system, and increasingly scrambling for a new transactional model.
This shift brings China and the BRICS alliance to the center of global economic strategy. The BRICS nations—Brazil, Russia, India, China, and South Africa—along with other major developing economies, are leading the growing trend of de-dollarization[iii]. They are promoting alternative currencies and trade systems, challenging the monopoly of the dollar.
For investors and policymakers, this trend conveys profound consequences. The return of Trump, dubbed Trump 2.0, and the revival of trade tensions with China may hasten the decline of the dollar’s global dominance. The former administration’s aggressive tariff policies and economic isolationism already disrupted global trade. A repeat scenario could further accelerate the transition toward a multipolar financial world. Even if President Trump has only four years to his belt, for how long will BRICS and its members wait to bring change to the status of international finance because the global south needs one more than ever
At this juncture, let’s turn to the pages of history. History provides clear and stunning parallels. The fall of the British pound as the global reserve currency after prolonged wars and economic decline paved the way for the rise of the dollar. Every empire’s fall has been accompanied by the fall of its currency [iv]. Savvy investors recognize this pattern and are increasingly looking to hedge against the risks of a declining dollar. This is more than just speculation; it is a historical fact.
If Trump 2.0 persists with the U.S.-China trade war, it could mark a strategic win for China—particularly if Beijing succeeds in strengthening trade ties that bypass the dollar. This would not only bolster China’s economic growth, but also signal a global shift in currency trust. For nations and investors closely monitoring macroeconomic trends, this is a development worth watching, especially as the U.S. treats its traditional allies as nothing. What could be its implication? America’s alienation of its traditional allies under protectionist policies may drive the European Union, Canada among other nations toward China and other emerging economic blocs. If the U.S. continues to treat its partners as adversaries, it may find itself isolated in a world pivoting toward financial alternatives, a signal that China is winning.
This geopolitical rivalry between the U.S. and China mirrors the timeless wisdom found in Suratul Kahf—a story of a wealthy man who preserved his wealth in gold, not paper, for his progeny to inherit. Had he saved his fortune in paper, time and nature would have rendered it worthless. This analogy perfectly captures the current dilemma: for decades, the U.S. has printed and exported paper—dollars—while others held the value. But today, the world is re-evaluating that value, increasingly leaning towards rejection of an overextended privilege.
The age of unquestioned dollar hegemony is coming to an end in a global economy that’s becoming increasingly multipolar. The question now is no longer if, but when—and what will emerge in its place.
[i] Maxwell, John C. Good leaders ask great questions: Your foundation for successful leadership. Center Street, 2014.
[ii] Gold Price Today – Forbes Advisor – Accessed: 9 May 2025.
[iii] Li, Y. “Trends, reasons and prospects of de-dollarization. South Centre.” 2023.
[iv] Dalio, Ray. Principles for dealing with the changing world order: Why nations succeed or fail. Simon and Schuster, 2021.