De-Dollarization: The Harbinger of a New Globalization Architecture?

Abstract

Western countries’ imposition of economic sanctions on Russia, as a result of the Russia-Ukraine conflict, and the imposition of sanctions on China, has unleashed a number of unexpected economic and geopolitical outcomes for the global economy. It has fostered the creation of a new economic and geopolitical multipolar global architecture, creating the “perfect global economic and geopolitical storms”, such as the renewed effort to dethrone the U.S. dollar as the world’s leading reserve currency. This paper discusses the main implications of a new global economic and political architecture, one in which the U.S. dollar will be playing a lesser role in global economic and financial markets.