An end to the loveless marriage with the US dollar?

Covid-19 represents an unexpected shock that could cause further US dollar decoupling, writes Gary Smith of Tabula Investment Management

Dollar-rejection

The US dollar is overwhelmingly the dominant currency in the world because of a confluence of circumstances during the past century that have reinforcing network effects. There are four key strands.

Firstly, almost all commodities are priced in dollars. This numeraire effect is well entrenched and unlikely to change while resource extraction companies have balance sheets denominated in dollars and often have stock market listings in the US.

Secondly, more than 80% of all foreign exchange

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