JPMorgan Chase stated on Wednesday (September 4th) that despite some significant changes in commodity markets and certain trading groups, the claim that the dominance of the US dollar in the global financial system is coming to an end is completely false.

JPMorgan Chase stated that global currencies are showing a trend towards diversification and are no longer dependent on the US dollar, but the reasons for the dominance of the US dollar are still "deeply rooted and structural".

The report points out that the behavior of bank deposits denominated in US dollars, sovereign wealth funds, and non reserve foreign assets in emerging markets continues to increase, and states that this "far offsets" the long-term decline of the US dollar in overall foreign exchange reserve holdings in emerging markets.

Due to record breaking debt issuance, the share of the US dollar in global total debt is still on the rise, and even despite geopolitical competition, statements about de dollarization appear exaggerated.

The real weakening of the dominant position of the US dollar may take decades, and the decline in the share of the US dollar in global trade and overall foreign exchange reserves should not be confused with de dollarization, "said the investment bank's report

The areas that have undergone significant changes include the commodity market, where oil trading is increasingly conducted in non US dollar currencies, and the demand for gold from central banks and emerging market consumers is also booming.

The bank believes that the most 'underestimated risk' to the dominance of the US dollar is the possibility of a split in the international payment system, which has long been dominated by the US dollar.

Is Asia involved in e-commerce innovation and activities?? The market is in a leading position globally, while the share of the United States and Western Europe is currently less than 30%.

Dozens of central banks are piloting digital versions of their own currencies, which may also make it easier to avoid the US banking system.

The true confidence of the private sector in the US dollar as a store of value seems indisputable, "said a report by JPMorgan Chase

However, we see a diversification and significant shift in cross-border transactions