According to Lumen Capital, a process in which the dollar’s hegemony gradually decreases may create opportunities in the currencies of developing countries.
Laurent Lequeu, Portfolio Manager at Lumen Capital in Singapore, told Bloomberg Radio, “The ‘dedollarization’ process is a long-term game. However, if you want to take a position for the next 3-5 years, it’s structurally developing country currencies and especially stablecoins. would be positive for yielding securities,” he said.
Recently, the aggressive diplomacy of Chinese President Xi Jinping and the steady increase in the use of yuan in trade strengthen the expectation that the use of the dollar will decrease globally. In some countries outside of China, voices are getting louder about the weakening of the dollar’s dominance. For this reason, opinions are expressed regarding the creation of non-dollar alternatives.
However, it seems premature to think that the dollar has lost its lead in global trade, as non-dollar transfers in international payments are still slow.
Lequeu stated that the hegemony of the dollar in world trade will continue in the short term.