It was in Porto that CFA Society Portugal had the privilege of bringing together specialists from BPI Gestão de Ativos, Capital Group, PIMCO and Fidelity International, with the moderation of our Vice President, João Carlos Caiano, CFA, for an engaging panel discussion on one of the most debated topics in global markets today: Global De-dollarization – Myth or Megatrend?
The discussion was marked by insightful analysis, diverse perspectives, and strong audience participation, as we explored the potential implications of a shifting international monetary system and its impact on global markets and geopolitics.
The main conclusion is that although global de-dollarization is acknowledged to be underway, there is no sufficiently strong alternative. Therefore, it is not expected that the US dollar will lose its global dominance in the coming decades.
The potential substitutes each face specific issues that prevent them from dethroning the dollar: the renminbi suffers from strict capital controls and limited convertibility; the euro is constrained by the absence of a unified eurozone-wide safe asset and fragmented fiscal governance; gold is unsuitable as a stable store of value; and digital assets are still too volatile.