De‐Dollarization Is a Plausible Outcome of the New Washington Consensus

ABSTRACT A trend towards de‐dollarization of the global economy in which the US dollar ceases to be used as the world's reserve currency for international transactions confronts some of the existing structures of international economic law, built upon the rules set out by US‐led organizations like the WTO, the IMF, and the World Bank. This article will consider the legal impediments which could frustrate de‐dollarization initiatives as well as potential ways that the framework of international economic law could facilitate this process. It will explore how trade and monetary law have prohibited currency manipulation, how international investment law has promoted currency exchange, the importance of the lending activities of new development banks, and the extent to which modern digital trade agreements may usher in digital currencies which could undermine dollar dominance. The various legal challenges which could be raised by de‐dollarization suggest that this process, should it occur, will probably be gradual and multi‐polar with numerous alternatives to the US dollar playing roles in a dynamic, if unstable global economy.