81% of respondents expect the adoption of alternative currencies by other countries for trade purposes will be a trend that continues in the future.
With concerns about the value of the US dollar dropping, many individuals are becoming skeptical of the United States’ dominance in international trade as countries reconsider trading using different currencies. For example, Brazil abandoned the US dollar and is directing trading with China using the Chinese Yuan, and the UAE is trading with China using the Chinese Yuan. Additionally, Russia and China are trading in their own currencies. Even the United States’ biggest ally and the most prominent oil producer, Saudi Arabia, is considering trading using other currencies. As countries abandon the US dollar, more and more countries will likely turn to these alternative currencies for trade. Savanta explores people’s beliefs, perceptions, and thoughts.
Most American respondents (87%) are familiar with the recent trend of other countries abandoning the US dollar and using other currencies to trade, with Boomers having the least familiarity with the subject (75%) and Millennials having the most (93%). The vast majority (85%) believe if other countries abandon the US dollar, it would understandably negatively impact the US economy. Additionally, 6/10 Americans believe other currencies, such as the Chinese yuan, pose a significant threat to the US dollar’s dominance in international trade. Amongst those, 75% of high-income earners believe it will pose a considerable threat. Gen-Z (35%) and women (52%) have shown the least concern.
Regarding the United States’ international presence, almost half of the American respondents (46%) think the US dollar’s status as the world’s reserve currency has impacted other countries. Particularly, high-income earners (67%), Millennials (58%), Males (55%), and those with kids (54%) have strong beliefs about it when compared to their counterparts. Furthermore, the vast majority of Americans (81%) expect the adoption of alternative currencies by other countries for trade purposes to be a trend that will continue in the future, with 83% thinking other countries abandoning the US dollar is a sign of declining American global influence.
Despite the concern, 7 out of 10 American respondents (69%) agree that other countries have the right to choose the currency they trade, even if it is not the US dollar. High-income earners showcased whopping support for other countries’ right to select what they prefer, at 85%, while Gen-Z surprisingly showcased the least support at 54%. Nonetheless, 84% of Americans think other countries abandoning the US dollar would impact US foreign policy. Amongst those, 53% reckon the impact would be negative. Additionally, most Boomers (76%), Gen X (67%), and those without kids (62%) displayed the most belief in the negative impact. However, most high-income earners (52%) think the effect would be positive.
Regarding national security, close to 9 in 10 Americans (86%) believe that the US dollar’s dominance in international trade is essential for US national security. Additionally, almost 9 out of 10 Americans (88%) think the US government should take some measures to protect the US dollar’s status as the world’s reserve currency and take steps to strengthen the value of the US dollar in international markets, with Gen-Z showing the least support (76%).
To combat the decline of the US’s international influence, most Americans (70%) think the US government should work to improve relations with countries that have abandoned or plan to abandon the US dollar for trade purposes. Additionally, high-income earners supported improving relations most (82%), while Gen-Z displayed the least support (52%).
By bettering and establishing stronger relationships with other countries, the hope of the people is that the United States’ international influence will be regained.