Since the Second World War, the US dollar has been the strongest currency in the world, but today these days offer weaker value for the dollar could undermine the modern, albeit amended, Bretton Woods order.
After World War II, the United States was the largest economy in the world. In the 70s, the US decoupled from gold. With the collapse of the Soviet Union, the whole world came more or less under U.S. dollar dominion.
Now we see China and Russia creating an alternative system, recruiting the likes of Kenya, France, and Brazil. They are working to de-dollarize their trade deals.
Over the past two decades, the U.S. dollar has lost 12 percentage points in market share, falling from 71% to 59%, according to data from the International Monetary Fund.
China is making the moves to create a Chinese alternative put forth by the Chinese Communist Party. Europe and Japan will be two key pieces to the puzzle—will they stick with the dollar or go with the Chinese yuan.
While it makes sense Japan sticks with the dollar, Europe could go with the BRICs. The Saudis will want to stay in close association with both the dollar and the yuan. Regardless, the world now has alternative blocs, which it has not had since the end of the Cold War.