De-dollarization

For decades, the US dollar has been the default currency for global trade and the main asset central banks hold in reserve, largely because it's seen as stable and universally accepted. De-dollarization describes efforts by some countries, often ones at odds with US foreign policy, to reduce that reliance, settling trade in their own currencies or holding more gold and fewer dollars in reserve. It's a slow-moving trend rather than a sudden shift, but even a modest move away from the dollar can affect US borrowing costs, since global dollar demand is part of what keeps America able to borrow cheaply.