Billionaire investor Ray Dalio’s concerns regarding the future of the US dollar (USD) are capturing significant attention as we progress into 2026. In a prior interview with NBC, Dalio underscored the potential risks to the dollar’s status as the world’s reserve currency, indicating that it is not guaranteed to remain dominant indefinitely. He warned of a potential “breakdown of the monetary order,” stemming from surging national debt, escalating tariffs, and policy choices that could hinder America’s long-term growth prospects.
Dalio predicted that the global economic landscape might begin shifting as soon as this year, prompting a gradual geopolitical realignment that could compromise the USD’s position. As trade tensions escalate, tariff disputes remain unresolved, further complicating international trade dynamics. Countries traditionally seen as stable, including those in the Nordic region, are also experiencing the effects, with new tariffs of 10% emerging in relation to ongoing disputes over Greenland.
“The USD may lose its reserve currency status,” Dalio remarked during the interview, citing observable shifts in global markets. He pointed out that as commodity prices rise, central banks are increasingly retreating from their reliance on the dollar, with some holding more gold than USD for the first time in decades. Recent market activities gave credence to this trend, evidenced by a sharp spike in US natural gas prices, which marked the largest daily increase in more than a year, while both gold and silver prices have continued to ascend steadily.
The erosion of confidence in the USD is becoming evident, with critics attributing much of the concern to aggressive policy choices from the US government. Tariff-heavy strategies are unsettling various international relationships and disrupting supply chains, affecting both allies and adversaries alike. In light of these uncertainties, numerous countries worldwide are re-evaluating their economic strategies to mitigate potential damage from further trade restrictions.
The rapid shifts in diplomatic ties are striking; long-standing allies have found their relationships strained, while many nations see the need to reduce their dependence on the USD not as a political maneuver but as a necessary step for economic self-preservation. Dalio cautioned that the US risks further undermining its position by “throwing rocks into the production system,” which may weaken its global standing, especially as China positions itself to assume greater leadership in the evolving economic landscape. Since Donald Trump’s return to office, the USD has faced additional pressure, dropping nearly 10% in value over the past year, intensifying discussions surrounding de-dollarization and the overall stability of the international financial order.
These developments serve as a reminder of the delicate balance in the global economy and the potential for significant changes as nations navigate complex trade relationships and economic self-interests.