Global finance is entering a transformational phase as the dominance of the US dollar weakens, opening up exciting opportunities for new currencies and signaling a tectonic shift in portfolios.

Warning from CEO Devere: The era of unchallenged power of the US dollar is slipping away

The CEO of the financial consulting company Devere Group, Nigel Green, warned on May 5 that global investors are dangerously underestimating the scale of the current decline of the US dollar and its implications for global finance. Speaking after the dollar registered its weakest start to the year since 2008, falling more than 4% on the Dollar Index (DXY), Green argued that the decline is the beginning of a larger structural shift rather than a temporary drop. Market expectations for multiple interest rate cuts in the US, along with renewed trade protectionism and increasing global political instability, are accelerating the currency's retreat.

"The dominance of the dollar is not disappearing overnight, but its era of unquestioned supremacy is waning. This carries huge implications for global portfolios, pricing, and capital allocation," Green stated. Emphasizing that this trend is not a sharp collapse but a prolonged weakening, he explained:

This decline is not a collapse; it is erosion.

Green noted that the US dollar now accounts for less than 59% of global reserves, a sharp decline from over 70% at the beginning of the century. "The euro is being reshaped not only as a regional anchor but also as a serious global stabilizer," he stated. "This does not mean it will replace the dollar, but rather become part of a broader mosaic of major currencies taking on greater influence."

The chief also pointed to the growing significance of Asian currencies, such as the Chinese yuan, spurred by bilateral trade agreements bypassing the US dollar and regional economic resilience. "We don’t think any single currency is going to take the place of the dollar," Green said. "Instead, we expect a more fragmented system — one where influence is distributed among several trusted currencies. This evolution is gradual but no less significant."

He also noted that shifts in monetary policy are exacerbating the dollar's vulnerability: "This narrowing of the interest rate differential makes US debt less attractive. And when demand for Treasury bonds decreases, the same happens with demand for dollars." Green warned that investors are clinging to outdated assumptions:

Investors can no longer think that the dollar will always recover. Such thinking is dangerously outdated. The transition to the dominance of multiple currencies has already begun. Those clinging to the old model risk being caught off guard.

"Dollar dominance is not over — but it is undergoing critical erosion. Those who act early will be best positioned to benefit from the next phase of global finance," he concluded.