Is it possible for another currency to replace the dollar?

Trading Discussion
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Helloooo! :blush: So much has been happening recently, and although I think the PH isn’t greatly affected (yet!!) by what’s happening in the US, I can’t help but wonder if the “US isolation” that’s supposedly bound to happen can make it possible for another currency to replace the dollar’s role in forex. :open_mouth: What do you guys think? :thinking:

https://www.bloomberg.com/news/articles/2025-04-10/trump-tariffs-will-lead-to-us-isolation-fast-retailing-ceo-says

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I think for now USD is too powerful and nothing can replace it, maybe in long term but not in any time close

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I think I agree with Margaret.

It’s possible that Trump may do huge damage to the US (and global) economy, but he’s only there for (a maximum of) 4 years and eventually things will somehow recover/normalize?

My guess is that there are no serious contenders, really? The Euro’s too ridiculous? The Yen isn’t used by enough people (and the CHF similar)? The Yuan and Rupee aren’t (yet) from sophisticated/respected enough economies? Crypto is weird and like a Dutch tulip bubble?

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It would be possible for gold to take over as the medium from which all others are based. With the prevalence of cross currencies these days it really does not make too much difference any more.

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Thank you Margaret! :blush: I guess it makes sense. USD has been the most traded currency for a while so it might take like a total economic upheaval to change its position. :sweat_smile:

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I was actually thinking about the possibility that the EUR can take its spot and the Yuan will be among the “major currencies.” :thinking: But I guess there’s still a loooong way to go before this happens. :open_mouth: Do you think there would be a different if let’s say Trump wins the presidency again and stays in position for additional years? Will it have a significant effect then? :thinking:

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Interesting! :blush: I never really considered gold. :open_mouth: Thanks igillman! :blush:

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well trump is currently doing fine I guess even if the US falls for a short time it will grow bigger!

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Back to a gold standard then?

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I was thinking this too. At least from a stability stand point and not being able to be manipulated by a single person. Or is that possible too? Any eur pros out there?

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There are two ways of doing it, the first way would be to go back onto the gold standard. This would be where everybody pegs their currency to gold and only moves it when they want to revalue their currency. Each country would have their own gold reserves and they would maintain their currency to gold ratio. This would wipe out the Forex markets as currencies would no longer rise and fall on an hourly basis as they would all be fixed (pegged) to gold.
The second way to do it is to have the Forex market use gold as its “main currency”. The markets would have USD/AUX, EUR/AUX etc… and then anything involving two currencies would be considered a cross currency. This would keep the Forex markets pretty much as they are now with the addition of the AUX currency (gold) and the one by which all others are based on.
Mostly it comes down to what people consider to be the “main currency” rather than what is declared. Currently lots of world trade is made in USD and so that, by default, becomes the basis to measure the others on as you have to convert to USD before buying anything.

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I am not sure if any currency could really be considered to be stable. You are right about no single person being able to manipulate the Euro but remember back to 2009-2010 with the Eurozone crisis? The Euro was not very stable back then.

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Everything is possible in politics and finance. The US dollar is not as powerful as it was ten years ago because Russia has started using its own currency, the ruble, for international trade. At the same time, China has also been moving away from the dollar by trading in its own currency, the yuan. Similarly, India is promoting the Indian rupee in global markets by expanding its use in international trade through UPI technology and Indian banks facilitating rupee transactions.

Even though the US dollar is weaker than it was a decade ago, it remains strong enough that no other currency can replace it as the dominant global currency—at least for now.

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Russia has very, very little international trade available, especially now, so why would that be a reason for the USD being less powerful than a decade ago?