The dollar's weakening grip on commodity pricing
The US dollar dominates pricing and payments of energy and metals. But this could be about to change. Geopolitical and economic motivations for dropping the dollar are robust. And energy deals priced in alternative currencies are becoming more prevalent. We expect China, Russia and Europe to lead the push to de-dollarise commodity markets. Energy transition and derivatives trading can impact the dollar's role in commodities. But, what will move the needle in switching away from the dollar and how long might it take? Furthermore, what are the macroeconomic implications of commodity de-dollarisation?