US Dollar Reserve Dominance Slipping—Expert Warns Trump’s Policies Fuel the Drop

U.S. President Donald Trump’s policies are accelerating a global shift away from the dollar, warns Nigel Green, CEO of financial advisory firm Devere Group. Green described the dollar’s dominance as being “shaken and severely tested” as Trump’s aggressive trade policies, diplomatic conflicts, and economic interventions erode confidence in the U.S. currency. He stated on March 6:

The dollar has long been the anchor of global finance, but Trump’s actions are eroding confidence at a stunning pace. The world is watching the U.S. turn inward with protectionism, trade wars, and erratic diplomacy.

The market reaction is already visible, with the dollar dropping to a four-month low. Despite Trump’s insistence that tariffs will “make America stronger,” Green warned that “the world is moving to insulate itself.” He pointed to major economies advancing alternative trade settlements, highlighting: “China and Russia are expanding the use of the yuan and ruble in cross-border payments. The euro is gaining traction for reserves.” He added: “The once-unthinkable de-dollarization seems to be happening at an accelerated pace, and Trump is handing the world every reason to continue.”

Trump’s foreign policy decisions are also driving allies away from the U.S. dollar. His conflict with Ukrainian President Volodymyr Zelenskyy and threats to cut military aid have sent shockwaves through Europe. Green emphasized that “confidence drives currency strength” and argued that Trump’s policies are making allies “think twice, igniting trade wars, and creating massive instability.” Countries like France and the UK are now considering greater military and economic independence. His drastic moves, including the establishment of the Department of Government Efficiency (DOGE) led by Elon Musk, are further unsettling investors, Green noted, adding: “Investors are questioning whether the U.S. economy is being driven by sound financial strategy or by impulsive political decisions.”

Additionally, Trump’s escalating trade wars, extending tariffs beyond China to allies like Canada and Mexico, are accelerating the realignment of global trade and diminishing reliance on the dollar.

The Devere executive explained that a weaker dollar could lead to higher borrowing costs, increased inflation, and reduced U.S. influence in global markets. The Bank of England and other key financial institutions have flagged growing risks tied to Trump’s trade policies. Investors are already making adjustments, shifting capital into other currencies such as the euro, Swiss franc, and yen. Green concluded:

Investors and institutions are already adjusting. The dollar’s status as a safe haven asset and reserve currency won’t disappear overnight, clearly, but Trump’s actions are lighting the fuse.

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