Insight
The dollar's weakening grip on commodity pricing
Report summary
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?
Table of contents
- Executive summary
- US dollar domination
-
Ditching the dollar?
- China’s renminbi ambitions
-
What currencies could replace the dollar?
- Established currencies or digital disruptors?
-
How deep could de-dollarisation in energy and metals go?
- Oil’s diminishing role
- What are the macroeconomic implications?
Tables and charts
This report includes 5 images and tables including:
- Energy and metals export value and share of global trade
- Major foreign holders of US treasury securities (July 2019)
- Daily turnover of foreign exchange instruments
- China and Europe trade value of net imports
- Official foreign exchange reserves
What's included
This report contains:
Other reports you may be interested in
Commodity Market Report
Oil products price forecast update October 2023
Short-term oil products prices and margins forecast.
$1,900
Commodity Market Report
Croatia downstream oil long-term outlook
National oil company INA is to invest in one refinery while ceasing crude processing at the other, as the battle over its control continues.
$4,750
Insight
Global coal M&A September 2023: Miners capitalize on record pricing, fueling deal revival
ESG commitment and strategic positioning will drive deal making
$1,100