Fed governor highlights de-dollarization debate as concerns of global economy dropping the dollar grow: ‘The role of the U.S. economy in world finance is changing’

(Credit: Bess Adler—Bloomberg/Getty Images)

By some measures, the greenback has lost some of its dominance. Global central banks’ dollar holdings fell some 20% from 2002 to 2022, while U.S. sanctions on Russia have prompted China and others to reduce their reliance on the dollar in trade.

That has the Fed keeping a close eye on the risks of de-dollarization and how it could impact American consumers and businesses.