The Cracks in Dollar Dominance Are Widening
At the 2026 China Chief Economists Forum, Stephen Xing, Chief China Economist at Morgan Stanley, argued that the U.S. dollar's role as the cornerstone of global finance is undergoing a structural erosion. Rising geopolitical fragmentation, unsustainable debt trajectories, and the emergence of alternative financial ecosystems are reshaping confidence in traditional fiat systems.
Rise of the New Strategic Assets
As currency volatility increases, institutional and private capital are pivoting toward tangible, scarcity-driven assets. Energy reserves, critical minerals, and precious metals are no longer just commodities—they’re becoming cornerstones of financial resilience.
- Gold and silver see renewed demand as inflation hedges
- Natural resource-rich economies attract long-term capital flows
- Non-Western financial networks begin to redefine value storage
A Paradigm Shift in Global Investing
The shift reflects a deeper recalibration: investors now prioritize underlying value, scarcity, and geopolitical insulation over nominal stability. This marks the beginning of a post-dollar-centric investment era, where asset legitimacy stems from utility, not just liquidity.