About this work
A weaker exchange rate does not necessarily mean a weaker international role for the dollar. Better emerging market fundamentals and easier dollar funding support local currencies and returns, while gold reserve valuations can exaggerate apparent diversification. Meanwhile, stablecoins extend informal dollar use. The analysis argues that dollar dominance is adapting to new channels rather than simply receding.
Cite this work
Marcello Estevão, Jonathan Fortun (2025). Global Macro Views: The Shape-Shifter — How the Dollar Adapts and Endures. Institute of International Finance.