Dollar Dominance, Without The Discount

Since the start of the second Trump administration, fears of de-dollarization and repeated talk of a broader “Sell America” trade have pushed the dollar’s global role back to the center of market and policy debate. Last year’s Liberation Day tariffs and recent international backlash against United States military operations in Iran have reopened questions about confidence in US policymaking and its impact on the dollar’s dominance in global markets. On the core metrics of monetary centrality, however, the dollar remains dominant: in 2025, it accounted for 56.8% of allocated global reserves, about half of international SWIFT payments, roughly 60% of foreign-currency debt issuance, and one side of 88% of global foreign-exchange transactions.