De-Dollarization? Not So Fast

7 Pages Posted: 22 Jun 2023 Last revised: 18 Mar 2024

Date Written: June 13, 2023


De-dollarization refers to the reduction of the reliance of foreign countries on the US dollar. This phenomenon generates concern about the U.S. dollar as a global currency. We construct new data on the currency denomination of central bank currency reserves, foreign exchange transaction volume, denomination of global debt securities, and the invoicing of trade. This paper presents empirical evidence suggesting that these concerns are misplaced, finding US dollar dominance remains unchanged up through late 2023, nearly two years after the 2022 Russian invasion of Ukraine and several years after the 2020 COVID-19 pandemic. Meanwhile euro and renminbi influence have since declined. These findings have implications for reserve currency resilience, U.S. dollar dominance, U.S. sanctions policy, international spillovers of U.S. monetary policy, and U.S. government borrowing costs.

Keywords: International Finance, Foreign Exchange, Reserve Currencies

JEL Classification: F11, F30, F33

Suggested Citation

Gerding, Felix and Hartley, Jonathan, De-Dollarization? Not So Fast (June 13, 2023). Available at SSRN: or

Felix Gerding (Contact Author)

Bocconi University ( email )

Via Sarfatti, 25
Milan, MI 20136

Jonathan Hartley

Stanford University ( email )

Stanford, CA
United States


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