{"id":83475,"date":"2026-07-15T11:47:11","date_gmt":"2026-07-15T11:47:11","guid":{"rendered":"https:\/\/www.europesays.com\/britain\/83475\/"},"modified":"2026-07-15T11:47:11","modified_gmt":"2026-07-15T11:47:11","slug":"redollarization-not-dedollarization-standard-chartered-thinks-u-s-dollar-fears-are-overstated","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/britain\/83475\/","title":{"rendered":"\u2018Redollarization,\u2019 not \u2018dedollarization\u2019: Standard Chartered thinks U.S. dollar fears are overstated"},"content":{"rendered":"

When U.S. allies like Canada and France grumble about overuse of the U.S. dollar, and as Washington\u2019s rivals like Iran start trading in cryptocurrencies<\/a> and the Chinese yuan, it can be easy to argue that the world is edging away from the greenback. The U.S. dollar\u2019s share of global foreign exchange reserves has fallen from 71% in 1999 to 57% in 2024, its lowest level in a quarter century.<\/p>\n

But economists at Standard Chartered<\/a> aren\u2019t convinced.<\/p>\n

\u201cWe\u2019re not really in this de-dollarization camp,\u201d Divya Devesh, Standard Chartered\u2019s co-head of FX research for ASEAN and South Asia, said during a July 15 press briefing at the bank\u2019s Singapore office. Instead, companies and investors are still clinging to the U.S. dollar.<\/p>\n

\u201cI actually see re-dollarization in the form of exporters keeping dollars, and investors still finding U.S. equities very attractive to invest in,\u201d Devesh said. He pointed out that Taiwan, for example, only converts $2 out of every $100 in export earnings into the New Taiwan dollar. The rest, he added, are mainly kept as U.S. dollars.<\/p>\n

Devesh\u2019s views are at odds with a growing chorus of economists and commentators who fear that U.S. government debt, Washington\u2019s use of sanctions and tariffs, and non-dollar trade could undermine the U.S. dollar\u2019s status as the world\u2019s most important currency.<\/p>\n

Asia\u2019s governments are actively de-risking from the USD, with central banks aggressively expanding their gold reserves. The People\u2019s Bank of China, for instance, has pushed for multi-month buying sprees<\/a>, while the Reserve Bank of India has repatriated roughly 100 tonnes of gold back to domestic vaults.<\/p>\n

Standard Chartered\u2019s economists acknowledged that the U.S. federal debt burden could worsen<\/a>, but argued that many other countries face the same fiscal challenges.\u00a0<\/p>\n

\u201cYou can have a negative view on Trump, twin deficits, or the U.S. budget trajectory,\u201d said Eric Robertsen, Standard Chartered\u2019s chief strategist and global head of research. \u201cBut if you sell U.S. dollars, you have to buy something else, and the alternatives out there are not very attractive.\u201d<\/p>\n

He framed the bond market, not the foreign exchange market, as the main outlet for fiscal concerns. \u201cI don\u2019t think the dollar is going to lose its safe-haven status in the near or medium term simply because of the budget deficit,\u201d he said.<\/p>\n

\u201cIn the aftermath of tariff announcements last year, there was a significant amount of dollar selling, or FX hedging, largely by European investors hedging their dollar assets,\u201d Robertsen explained. \u201cNow that the Fed is not cutting rates and the U.S. economy [is] displaying some resilience, the idea of U.S. outperformance is gaining some traction again.\u201d<\/p>\n

Productivity gains in the U.S. are also strengthening the U.S. dollar. \u201cIt\u2019s not just in the AI industry. Broader productivity gains across the U.S. should translate into better earnings, and subsequently into more capital flows going into the U.S.,\u201d Devesh concluded. \u201cThe demand for U.S. assets from foreigners is also still very strong, and that\u2019s the underlying driver which keeps the dollar quite resilient.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"When U.S. allies like Canada and France grumble about overuse of the U.S. dollar, and as Washington\u2019s rivals…\n","protected":false},"author":2,"featured_media":83476,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[21387],"tags":[1659,36839,35251,20677],"class_list":["post-83475","post","type-post","status-publish","format-standard","has-post-thumbnail","category-standard-chartered","tag-asia","tag-central-banking","tag-foreign-exchange","tag-standard-chartered"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/116923835524348109","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/83475","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=83475"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/83475\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/83476"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=83475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=83475"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=83475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}