There are some signs of de-dollarisation emerging right now, but the dollar should retain its “large footprint” for the foreseeable future, JPMorgan currency strategists said in a note on Monday.
“Putting together various measures, overall USD usage remains within its historical range with the dollar at top of the pack, but usage is bifurcated under the hood,” strategists Meera Chandan and Octavia Popescu at the Wall Street bank wrote.
The dollar’s share of traded currency volumes is just shy of record highs, at 88%, while the euro’s share has shrunk by 8 percentage points in the last decade to a record low of 31%. The share of the Chinese yuan, meanwhile, has risen to a record high of 7%.
“De-dollarisation is evident in FX reserves where (the dollar’s) share has declined to a record as share in exports declined, but is still emerging in commodities,” the strategists said.