Even America's biggest bank says de-dollarisation is a trend here to persist

De-dollarisation has started gaining prominence as experts feel that divergence from dollar usage has begun to show. As per analysts of America’s biggest bank JP Morgan, “Some signs of de-dollarisation are emerging and this trend is likely to persist.” “But USD should maintain its large footprint for the foreseeable future,” they added. The dollar’s share of foreign exchange reserves has also dropped significantly after the US and some European nations, last year, froze Russia’s $330 billion in reserves for its invasion of Ukraine. This prompted several nations to decrease their reliance on the dollar. “De-dollarisation is evident in FX (foreign exchange) reserves where USD share has declined to a record as share in exports declined, but is still emerging in commodities,” JPMorgan said. The US has been witnessing a decline in shares of global trade as the exports in the country fell to a record low of 9 per cent. Also, the dollar has started to lose to gold as foreign central banks, for the past few quarters, have purchased the yellow mental in record volumes. Gold now compromises 15 per cent of total assets, compared to the dollar’s 44 per cent. However, the US dollar remains “top-of-class” in global transactions, and accounts for 88 per cent foreign exchange volumes. Also, the currency’s share of trade invoicing has remained steady between 40 per cent and 50 per cent for two decades. Analysts of JPMorgan said there isn’t much of prospect of a yuan-dominated currency regime, as the Chinese currency’s international presence remains small: compared to the dollar’s 43 per cent share of SWIFT payments. Yuan compromises just 2.3 per cent. With inputs from agencies Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram.