“Re-Dollarization” Trends Dubbing De-Dollarization A Sad Myth

The era of de-dollarization is ending, with new analogies coming up, supporting the age of dollar dominance or “Re-Dollarization.” As contrary beliefs propagate how the US dollar has been weaponized, eroding its prestige globally, the factual dataset tells a different story. Amid the de-dollarization woes gnawing at the dollar, the factual data states how the dollar dominance never really faded away, not entirely, as the USD’s demand continues to prosper in the long haul. With Trump ascending to the presidential role, the US dollar is poised to grow stronger, eliminating competitors along the way.

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Re-Dollarization: What Do You Mean By It?

The noteworthy Gavekal Research has brought forth an interesting analysis of the US dollar. In a recently uploaded chart analysis, the research platform outlined contrasting beliefs, adding more to the dollar’s prestige on a global platform. The portal meticulously shared how the dollar’s share of global payments using SWIFT has increased, reaching its highest level in the last 12 years. The contrasting analysis blurs the theory of de-dollarization, the myth that states how the US dollar dumping is visibly impacting its valuation.

The chart further outlines de-euroization, a phenomenon in which the Euro’s usage in global transactions has been declining at a rapid pace. The post states how Euro has been rapidly plummeting with its global transaction share declining in the last 5 years.

Similarly, the Yuan, an able competitor to the USD rumored to replace it is also nothing but a floating myth. Per the research, Yuan’s Global share has certainly risen, but it only represents 5% of the global transactions. In conclusion, Re-Dollarization is a new phenomenon that has been trending as of late, proving how de-dollarization is nothing but a speculatory concept.

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Dollar Surges Reacting To Trump’s Iconic Election Win

The US dollar has risen to a high of 105.4 on Friday, reacting to the stunning Trump’s election win. However, the index may encounter a certain amount of volatility in the upcoming days. The DXY index may fluctuate as significant key data metrics are set to be announced in the next few days.

Trump may make new amends to protect the legacy of the dollar. The current US president has already made certain vows to impose taxes on countries moving away from the dollar. With Trump’s pro-dollar stance, the value of the dollar might seek stable ground sooner rather than later.

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