> I don’t want to overstate the case here. The dollar’s role as the dominant currency for ordinary business is not under threat. A new article in Foreign Policy by Agathe Demarais is titled “China’s de-dollarization drive has hit a wall.” [1]

The headline is this:

> Iran’s ability to withstand American pressure has demonstrated that U.S. sanctions are a lot less effective than in the past given that rogue actors can use the yuan and CIPS as a work-around.

The dollar as an instrument of offensive diplomacy is now weakened, not as the currency of international transaction. That being said Iran's economy isn't exactly doing numbers at the moment so even this caveat has a caveat.

[1] https://foreignpolicy.com/2026/06/24/china-dollar-dedollariz...

You could make an argument that the Yuan could be an alternative to USD as a mechanism of international payments, but you ignore the danger of working in a currency controlled by a country with no rule of law.

Krugman is so blinded by Trump hatred that he can't be objective. You dont have to be a MAGA person to see this post is terribly stilted.