This master’s thesis explores the international role of the U.S. dollar and the political determinants that may shape its long-term dominance. Since the Bretton Woods Conference, the dollar has served as the cornerstone of the global financial system, functioning as the primary reserve currency, unit of account, and medium of exchange in international trade. While its strength has traditionally been rooted in economic stability and liquidity, recent decades have underscored the growing influence of political decisions that may erode confidence in its stability. The central research objective is to assess how political actions, particularly sanctions and the instrumentalisation of currency in foreign policy can trigger processes of disengagement from international currencies, even when such moves are not economically optimal. The empirical analysis focuses on Russia in the period 2014–2024, during which the U.S. imposed extensive financial and economic sanctions. Findings indicate that sanctions have spurred systematic dedollarization: a declining share of the dollar in foreign exchange reserves, increased holdings of gold and the renminbi, and a broader use of alternative currencies in trade. Nonetheless, the results confirm that the impact of dedollarization remains limited, as global financial flows and reserves continue to be predominantly tied to the dollar. The research demonstrates that dedollarization is above all a politically motivated process, yet one constrained in the long term by underlying economic realities. The dollar remains the central anchor of the international financial system, while prospects for monetary multipolarity are advancing only gradually and without the emergence of a clear successor.
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