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Dedollarization is here, like it or not

A major driver is Washington’s weaponization of its currency via sanctions, covering 29 percent of the global economy. (Video)

Analysis | Africa

Dedollarization appears to be an unstoppable trend as countries around the world look to reduce their dependence on U.S. currency.

Countries, particularly those in the Global South, are reducing their U.S. dollar reserves, settling cross border transactions in non-dollar currencies, and exploring the formation of new multilateral settlement mechanisms.

A major driver of this trend is Washington’s weaponization of the dollar via expansive sanctions that currently cover 29 percent of the global economy and 40 percent of global oil reserves.

Two recent Responsible Statecraft articles, one authored by International Crisis Group co-chair Frank Giustra and another by Quincy Institute Non-Resident Fellow Amir Handjani, began the process of explaining the drivers of this economic trend, as well as the geopolitical pitfalls facing the U.S. as much of the world reduces its dependence on the dollar, especially if the U.S. fails to engage other countries in the process of forming a multilateral monetary system.

In this video, Giustra and Handjani make the case for the U.S. acknowledging the trend of dedollarization and for Washington to address the national security dangers, as well as global economic and political instability, associated with this unmanaged decline of U.S. economic hegemony.


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Analysis | Africa
Somalia
Top image credit: U.S. forces host a range day with the Danab Brigade in Somalia, May 9, 2021. Special Operations Command Africa remains engaged with partner forces in Somalia in order to promote safety and stability across the Horn of Africa. (U.S. Air Force photo by Staff Sgt. Zoe Russell)

Why the US can't beat al-Shabaab in Somalia

Africa

The New York Times reported earlier this month that recent gains by al-Shabaab Islamist militants in central and southern Somalia has prompted a debate within the State Department about closing the U.S. Embassy in Mogadishu and withdrawing most American personnel. At the forefront of some officials’ minds, according to the Times, are memories of recent foreign policy fiascos, such as the fall of the Afghan government amid a hasty American withdrawal in 2021.

There are good reasons to question why the U.S. has been unable to defeat al-Shabaab despite nearly 20 years of U.S. military involvement in the country. But the scale of the U.S. role is drastically different than that of Afghanistan, and the U.S. cannot necessarily be described as the most significant external security actor on the ground. At the same time, the Trump administration has given no indication that it will scale down drone strikes — meaning that the U.S. will continue to privilege military solutions.

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Hegseth Guam
Top photo credit: Secretary of Defense Pete Hegseth departs Andersen Air Force Base, Guam, March 27, 2025. (DOD photo by U.S. Air Force Madelyn Keech)

Hegseth goes to 'spear point' Guam to prep for war with China

Asia-Pacific

The Guam headlines from the recent visit of the U.S. secretary of defense are only part of Secretary Hegseth’s maiden visit to the Pacific. It is Guam’s place in the larger picture - where the island fits into U.S. strategy - that helps us understand how the “tip of the spear” is being positioned. Perhaps overlooked, the arrangement of the “Guam piece” gives us a better sense not only of Guam’s importance to the United States, but also of how the U.S. sees the larger geopolitical competition taking shape.

Before he landed on Guam, the secretary of defense circulated a secret memo that prioritized U.S. readiness for a potential conflict with China over Taiwan. At the same time, it was reported that U.S. intelligence assessed that Guam would be “a major target of Chinese missile strikes” if China launched an invasion of Taiwan.

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Pope Francis' legacy of inter-faith diplomacy
Top image credit: Pope Francis met with Grand Ayatollah Ali Al-Sistani, one of the Muslim world's leading authorities on March 6, 2021 in Najaf, Iraq. (Vatican Media via REUTERS)

Pope Francis' legacy of inter-faith diplomacy

Global Crises

One of the most enduring tributes to Pope Francis, who passed away this Easter, would be the appreciation for his legacy of inter-religious diplomacy, a vision rooted in his humility, compassion, and a commitment to bridging divides — between faiths, cultures, and ideologies — from a standpoint of mutual respect and tolerance.

Among his most profound contributions is his historic meeting with Grand Ayatollah Ali al-Sistani in Najaf, Iraq, on March 6, 2021. What made this meeting a true landmark in inter-faith dialogue was the fact it brought together, for the first time, the spiritual leader of the world’s 1.2 billion Roman Catholics and one of the most revered figures in Shia Islam, with influence on tens of millions of Shia Muslims globally. In a humble, yet moving ceremony, the meeting took place in al-Sistani’s modest home in Najaf. A frail al-Sistani, who rarely receives visitors and typically remains seated, stood to greet the 84-year-old Pope and held his hand, in a gesture that underscored mutual respect.

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