The Might of the US Dollar: De-Dollarization Fails, Other World Currencies are Out!
Jakarta, Pintu News – Geopolitical tensions between Israel and Iran have once again proven that the US dollar remains the top choice of global investors. Amidst the uncertainty, the DXY index surged above 98 after dropping to 95 only a month ago. This surge indicates that market confidence in the US dollar is still very strong, especially when a crisis hits. This phenomenon also eliminates the de-dollarization discourse that has been predicted as a threat to the dollar’s dominance.
US Dollar is the First Choice in Crisis, De-Dollarization Delayed
When international conflicts heat up, market participants tend to look for assets that are considered the safest, and the US dollar is always the main destination. Countries that previously campaigned for de-dollarization are now buying US dollars to strengthen their foreign exchange reserves. For example, the Chinese government is encouraging state-owned banks and companies to collect US dollars to push down the yuan exchange rate.
This move proves that de-dollarization efforts have not been able to shake the US dollar’s position as a global currency. Not only developing countries, but also developed countries continue to rely on the US dollar as a hedge against market turmoil. Other currencies such as the euro, pound sterling, yuan, and yen have proven unable to withstand the pressure when volatility increases.
The US dollar has even been dubbed the “cleanest dirty shirt” as it remains the best choice despite many competitors. For more than seven decades, the US dollar has proven its resilience in the face of various economic and political crises.
Alternative global currencies unable to compete with the US dollar
De-dollarization efforts initiated by a number of countries have not been able to present a truly viable alternative to the US dollar. There is no single currency that can match the market’s confidence in the dollar, even amid efforts to diversify foreign exchange reserves. The Swiss franc, which had strengthened sharply, finally had to be weakened by the intervention of the Swiss National Bank (SNB) in order to maintain price stability in the country.
The SNB publicly stated that it is ready to intervene in the foreign exchange market to prevent too rapid and excessive appreciation of the franc against the US dollar. Meanwhile, the euro was only able to edge up by 0.2% against the Swiss franc, reaching a daily high of 0.9098.
This shows that even the euro has not been able to become a serious competitor to the US dollar amid global uncertainty. On the other hand, cryptocurrencies such as Bitcoin , Ethereum , Ripple , and Pepe Coin are still considered too volatile to be the main hedging assets. Thus, the dominance of the US dollar as the world’s reserve currency is still unshakable today.
Global Market Confidence in US Dollar Remains Unwavering
Market confidence in the US dollar has strengthened in line with rising geopolitical tensions and global economic uncertainty. Institutional investors and major economies continue to choose the US dollar as their main safe haven asset, despite various de-dollarization efforts. Not only that, central banks in various countries also still rely on the US dollar to maintain the stability of their exchange rates and foreign exchange reserves.
This proves that the US dollar is still the backbone of the international financial system. Amidst the global currency competition, the US dollar remains ahead thanks to its high liquidity, market confidence, and central role in international trade. Other currencies, including the euro, Swiss franc and yuan, have not been able to match the strength of the US dollar in the face of market pressures. In fact, central bank interventions such as the SNB’s have only strengthened the US dollar’s position as the most stable currency. Thus, the dominance of the US dollar is predicted to continue for quite a long time.
US Dollar Remains Indispensable Amid World Turmoil
The dominance of the US dollar as a global currency is once again evident amidst conflict and uncertainty in the world economy. De-dollarization efforts initiated by a number of countries have not been able to present a commensurate alternative. Market confidence in the US dollar remains high, making it the first choice when a crisis hits. As long as there is no truly strong competitor, the US dollar will continue to be king in international financial markets.
Also Read: 700% Crypto Withdrawal Surge in Iran: Bitcoin becomes a financial escape route during crisis
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Reference
- Watcher Guru. There’s No De-Dollarization: US Dollar Surges Again. Accessed on March 5, 2026
