J.P. Morgan’s latest research frames de-dollarization as a gradual shift away from the US dollar in global trade and finance. While the dollar still dominates FX volumes—88 % in 2022—and trade invoicing, its share in central bank FX reserves has slipped to a two‑decade low. The study highlights a growing appetite for non‑dollar denominated contracts in commodity markets.

Drivers of the shift include erosion of U.S. political stability and tariff uncertainty, which undermine confidence in the greenback’s safety. At the same time, China’s economic reforms and the rise of the yuan bolster its credibility as a potential reserve currency. Analysts warn that a sustained move away from the dollar could reshape global power balances and depress U.S. asset returns.

For investors, the trend signals a potential decline in U.S. equity performance and a rise in real yields as foreign holders divest Treasury holdings. Market participants will watch central bank balance sheets, commodity pricing shifts, and the pace of bilateral trade in yuan for clues. The next few years will test whether the dollar’s dominance can withstand geopolitical and economic pressures.