Written by Ejaz Ayoub

Few instruments of economic power have shaped the modern world like the US dollar. Forged in the aftermath of World War II and institutionalised through the Bretton Woods Agreement of 1944, the dollar emerged not just as a currency but as a cornerstone of global order. Over the decades, it has served as the primary medium for international trade, the main reserve of global central banks, and the de facto unit of account in global finance. Institutions such as the IMF and the World Bank operate under the framework shaped by the dollar’s reach. But the early months of 2025 have brought a subtle, yet unmistakable question to the fore: Is the world gradually rebalancing its monetary loyalties? While the dollar is not in free fall, its supremacy — once assumed to be permanent — is being increasingly re-evaluated in boardrooms, central banks, and strategic capitals around the globe.

In the first half of this year, the US dollar registered its steepest decline since 1973, dropping more than 10 per cent against a basket of major currencies. This reflects broader vulnerabilities, both short-term pressures and long-range structural patterns. In the near term, President Trump’s renewed tariff push has rattled global trade flows. The uncertainty triggered by tariffs on allies and rivals alike has disrupted supply chains and raised fears of imported inflation. Crucially, global demand for the........

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