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The U.S. dollar is everywhere.
It backs 88% of global currency trades, anchors 54% of international invoicing, and fuels Washington’s sanctions power. For decades, it’s been the core of the global financial system.
But that system is starting to fray.
In this video, we trace how the dollar became the world’s reserve currency, from Bretton Woods to the petrodollar deal with Saudi Arabia. We explain the advantages this gives the U.S., like cheap borrowing and sanctions leverage. And we show how that same dominance has turned the dollar into a target.
Today, countries like China and Russia are openly challenging dollar supremacy. China has ramped up yuan-based trade with key allies and built its own SWIFT alternative, while BRICS countries are floating ideas for a shared currency. But as we explain, these alternatives face serious roadblocks, from capital controls to weak legal systems.
We also examine how Trump’s return to aggressive tariffs is putting even more pressure on the dollar’s role in global trade. After 2022, U.S. sanctions and protectionism pushed countries to diversify reserves, shift supply chains, and find new payment systems. Trump 2.0 may accelerate that trend.
So where does this leave us?
A full collapse of the dollar’s dominance isn’t coming soon. But a slower fragmentation is already underway. The dollar still rules, but it no longer rules alone.
00:00 - Introduction
00:54 - What is a Reserve Currency?
01:46 - The Origins of Dollar Supremacy
05:37 - The Benefits for America
09:51 - Why the Alternatives Won’t Work
17:15 - Conclusion