Global investors are beginning to offload dollar assets, shaking the status of the dollar as the world’s key currency for the first time in 80 years since the Bretton Woods system was established in 1944. This seismic shift is being attributed to U.S. President Donald Trump’s undermining of global norms such as free trade and the independence of central banks, leading to comparisons with “Brexit” and the coining of the term “AMEXIT.”
On April 21 (local time), signs of “Sell America,” where stocks, treasuries, and dollars are sold off simultaneously, intensified in the U.S. asset market. The dollar index against six major currencies fell from 99.38 to 98.28, breaking the 99 level, and dropped further to 97.92 during the day—the lowest since March 2022. Wall Street views this as a departure from dollar assets due to distrust in U.S. policy, as the dollar weakens together with stocks and treasuries. On the New York Stock Exchange, the Dow Jones Industrial Average fell by 2.48%, with all three major indices showing a decline rate of over 2%. The yield on the 10-year U.S. Treasury bond surged by 8.4 basis points, accelerating the selling trend.
As market anxiety grows, investors are turning to gold as a safe haven asset. According to Bloomberg, June gold futures prices rose to $3,500 per troy ounce during the day on April 22, surpassing the $3,500 mark for the first time—a clear indication of increased market anxiety and lack of confidence in traditional financial assets.
President Trump has deepened distrust in U.S. policy by mentioning the dismissal of Federal Reserve Chair Jerome Powell following tariff bombardments. Trump pressured Powell, saying, the U.S. economy is headed for a slowdown “unless Mr. Too Late, a major loser, lowers interest rates NOW.” He argued that falling food and energy prices justified a preemptive rate cut. Such statements have raised concerns about political interference with Federal Reserve independence—a cornerstone of maintaining economic stability.
With firm trust in the U.S. economy crumbling, it is expected that global investors will accelerate their selling of dollar assets. According to a survey by Bank of America (BofA), 61% of global fund managers expect the dollar value to decline over the next 12 months, marking the most pessimistic outlook in two decades.
George Saravelos, head of global foreign exchange research at Deutsche Bank, commented on this trend: “Even though President Trump has backed down from some tariff policies, the dollar has already been hit,” adding that “the market is reassessing the attractiveness of the dollar as the world’s key currency, and rapid de-dollarization is underway.”
The current situation reflects broader historical and economic contexts. The Bretton Woods system, established in 1944, positioned the U.S. dollar as a primary reserve currency—a status that has persisted even after the system’s end in 1971. However, recent developments suggest a significant shift, with some drawing parallels to Brexit’s impact on Europe—hence “AMEXIT.” This shift is compounded by Trump’s protectionist trade policies and controversial statements that affect market confidence.
As global economic sentiment turns increasingly pessimistic regarding U.S. financial stability and policy direction, investors may continue seeking alternatives like gold or other currencies less influenced by political volatility. The ongoing reassessment of dollar assets could lead to profound changes in international monetary dynamics and influence future economic strategies worldwide.
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