3 min read

De-dollarization is a MEME

In this video, I explain why de-dollarization is a meme and summarize reasons why the dollar will stay king for the foreseeable future.
De-dollarization is a MEME

Ofc Trump has an opinion on this:

Statistics about USD dominance:

Share of payments:

Share of forex reserves:

How de-dollarization works:

Watch this to understand the details:

The US saves little because the US has a trade deficit that's driven by excess savings elsewhere:

  • Countries with open capital accounts cannot control the relationship between S and I.

Trade deficits benefit those with liquid capital (elites):

  • When the US opened its capital account, surplus countries started investing there because Anglophone countries have the best legal infrastructure for capital inflows (60-80% of trade deficits belong to these countries).

Why China's Yuan isn't a thing

Recycling excess savings in developing countries is going down:

The ROI isn't there:

CNY bond market isn't liquid:

  • China pays for its projects in USD because contractors want USD (easier to recycle).


BRICs are not politically aligned:

  • Chinese holdings of USTs is not equal to Chinese holdings of dollars.
  • If Russia buys CNY now China has a lower surplus and can either reinvest that money domestically or boost their dollar holdings and they are boosting their holdings.


  • If US reduces dollar dominance it adds domestic demand and subtracts foreign demand.
  • China wants more non-USD trade, but what matters is WHAT YOU DO WITH THE REVENUE.
  • Crypto settlement is also a meme.

Who to follow: