Economists at Davos Warn Against Trump’s Rhetoric on Dollar’s Dominance

At the World Economic Forum in Davos, leading economists warned that former US President Donald Trump’s threats to weaponize the dollar could accelerate its decline as the world’s reserve currency.

Trump’s recent statements about imposing sanctions and restricting dollar transactions have raised alarm among financial experts, who argue such moves would erode trust in the US financial system.

“If you politicize the dollar, countries will look for alternatives,” said one economist, pointing to the growing adoption of the Chinese yuan and other regional currencies in international trade. 

The dollar’s dominance has already faced challenges from emerging payment systems and bilateral trade agreements bypassing US currency.

Critics argue that Trump’s rhetoric, combined with broader geopolitical shifts, could hasten a global pivot away from dollar dependency.

“The dollar’s strength lies in its reliability,” said a Davos attendee. “Undermining that could have serious consequences for the US economy.”

The warnings come as nations like China and Russia push for greater de-dollarization in response to US sanctions.

While the dollar remains the world’s primary reserve currency, the debate at Davos highlights the fragile balance between economic power and political strategy in an increasingly multipolar world.