Jefferies: Trump tariffs could accelerate de-dollarization

In their 2026 outlook, Jefferies analysts noted that the dollar's dominance in global foreign exchange reserves could face a gradual erosion, in part because of Mr. Trump's tariffs on trading partners. "The recent trade war has damaged the dollar's status as a major reserve currency," the report said. While the dollar will retain its role as a core reserve currency in the short term, "a slow and sustained de-dollarisation trend is likely". Analysts warned that as geopolitical and trade frictions intensify, central banks and investors could begin to question the risks of concentrating all their reserves in the dollar and seek to diversify. "Investors may reassess strategies of over-reliance on the dollar and instead overweight other assets." Jefferies believes that gold will be the main beneficiary of this de-dollarization process.