The US dollar is standing at a precarious threshold, with countries moving away from the dollar faster than ever. The oracle of Omaha, Warren Buffett, has finally given an earth-shattering statement, adding how the world should hold other currencies besides the US dollar. This statement has sparked a global frenzy, with major financial giants like Deutsche Bank predicting the US dollar’s decline. In the middle of this, one leading global giant economy is now quietly ditching the US dollar officially, sparking widespread debate on whether the USD can protect its reserve currency status in the long run.
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Which Economy Is Officially Ditching The US Dollar?
China, the ultimate nemesis of the US, is currently holding talks on de-dollarization. Per the expert Benjamin Norton, China is slowly moving away from the dollar, dumping the official US treasury by 17% from 2015 to 2022 and 27% from 2022 to 2024. Per Norton, China is currently pursuing strategies to reduce “the share of US government debt in its huge $3.2 trillion of reserves.
“China is holding many high-level discussions about de-dollarization. It is pursuing several strategies to reduce the share of US government debt in its huge $3.2 trillion of reserves. China reduced its official holdings of US Treasury securities by 17% from 2015 to 2022 and by 27% from 2022 to 2024.”
At the same time, China is also working on diversifying its assets away from the dollar in a move to protect its assets.
“Beijing is concerned that Washington could freeze/seize its US assets, like the US did to Russia in 2022. China also considers the Trump administration’s proposal of a “Mar-a-Lago Accord,” in which the US would force allies to buy 100-year zero-coupon bonds, to be a de facto default on US national debt.”
In addition to this, China is also thinking of ways to ditch the US dollar to protect its economic prestige. Chinese officials are also reportedly thinking of diversifying away from the dollar into other currencies. In other words, the country is also thinking of bolstering investments in gold and in the sovereign debt of other advanced economies to combat economic downturns.
“Chinese officials are considering many alternatives, including currency diversification, investment in the sovereign debt of other advanced economies, and, of course, gold.”
China is holding many high-level discussions about de-dollarization. It is pursuing several strategies to reduce the share of US government debt in its huge $3.2 trillion of reserves.
China reduced its official holdings of US Treasury securities by 17% from 2015-22, and by 27%… pic.twitter.com/YXoAwTT0mv
— Ben Norton (@BenjaminNorton) May 3, 2025
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Experts Are Warning To Move Away From The USD
Leading experts and entities, including Warren Buffett and Deutsche Bank, are warning of an impending USD volatility. Buffett has warned how enterprises should hold other currencies besides the US dollar in a groundbreaking new statement, solidifying the declining stature of the dollar.
At the same time, Deutsche Bank has also issued a stark warning, adding how the US dollar is losing its safe-haven status as it continues to spiral downwards.
“We do not write this lightly. But the speed and scale of global shifts are so rapid that this needs to be acknowledged as a possibility. It is hard to overestimate the scale of change taking place in global economic and geopolitical relations in a matter of days. What stands out in today’s market reaction is that the dollar is not strengthening materially. We would not have expected these market moves at the start of the year… Bringing it all together, we are starting to become more open-minded to the prospects of a broader, weaker trend unfolding for the dollar. Two pillars of America’s role in the world are being fundamentally challenged: the US’s security backstop for Europe and the respect of rules-based free trade.” As stated by George Saravelos, the bank’s global head of FX strategy, in a note to clients
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