While the US dollar will not retain its preeminent status forever, countries in the Global South cannot afford to wait out its dominance. With a strategic approach, they can reduce their dependence on the dollar, thereby mitigating the associated risks and fostering a more balanced and resilient global financial landscape.
NEW DELHI—The US dollar’s share in global foreign reserves peaked in 2001, and has been declining ever since. But while this trend is likely to continue, it is progressing very slowly, meaning that the greenback will retain its relative dominance—and the Global South will continue to suffer the consequences of US policy—for years to come.