City Research Online

Abstract

A trend towards de-dollarization of the global economy in which the US dollar ceases to be used as the world’s reserve currency for international transactions confronts some of the existing structures of international economic law, built upon the rules set out by US-led organizations like the WTO, the IMF and the World Bank. This article will consider the legal impediments which could frustrate de-dollarization initiatives as well as potential ways that the framework of international economic law could facilitate this process. It will explore how trade and monetary law has prohibited currency manipulation, how international investment law has promoted currency exchange, the importance of the lending activities of new development banks, and the extent to which modern digital trade agreements may usher in digital currencies which could undermine dollar dominance. The various legal challenges which could be raised by de-dollarization suggests that this process, should it occur, will probably be gradual and multi-polar with numerous alternatives to the US dollar playing roles in a dynamic, if unstable global economy.

Publication Type:	Article
Additional Information:	This is the peer reviewed version of the following article: Collins, D. (2025). De-Dollarization is a Plausible Outcome of the New Washington Consensus. Global Policy, which will be published in final form at onlinelibrary.wiley.com/journal/17585899. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
Publisher Keywords:	de-dollarization, international trade law, international investment law, WTO, digital trade, currency manipulation, IMF, development banks
Subjects:	J Political Science > JA Political science (General)
Departments:	The City Law School The City Law School > Academic Programmes
SWORD Depositor:	Symplectic Administrator

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