For generations, the U.S. dollar has stood at the center of the global economy. It has been the world’s reserve currency, the safe haven investors rushed to during times of crisis, and the foundation of global trade and finance. Yet some of the world’s wealthiest investors are now quietly making a major change: they are reducing their exposure to the dollar and the United States itself.
This trend, increasingly called “de-dollarization,” does not mean the dollar is suddenly collapsing or that wealthy investors are abandoning America altogether. Instead, many billionaire families and elite investment groups are rethinking risk and spreading their money more broadly across countries, currencies, and asset classes. The shift says as much about growing fears over geopolitics, debt, and economic instability as it does about confidence in the future of the dollar.
The Super Rich Are Changing Course
According to the UBS Global Family Office Report 2026, some of the world’s richest families are planning major changes to their portfolios. Family offices, which manage investments for ultra wealthy families, are making the largest strategic shifts in years. Fully 60% of family offices surveyed said they plan to change their investment allocation in the next year, roughly double the pace of the previous five years. Many are specifically trimming their U.S. holdings and looking elsewhere.
UBS surveyed 307 wealthy families with an average net worth of $2.7 billion. Their message was clear: North America is now the only major region where family offices plan to reduce investment allocations over the next year. Instead, many are increasing investments in regions such as Latin America, Africa, Asia Pacific, and parts of Europe.
John Mathews, UBS head of private wealth management for the Americas, described a major shift in investor thinking. “Last year, all of the family offices were super concerned about global trade tariffs tensions,” he said. “Today it’s really shifted to geopolitical tensions around the world, global debt, and now interest rates. And not just the short-term implications, but the longer-term implications of these as well.”
In other words, wealthy investors are increasingly worried that the global financial system is becoming more unstable and interconnected. They fear wars, trade conflicts, inflation risks, rising government debt, and volatile policy shifts may create shocks that could damage concentrated portfolios.
What Is De-Dollarization?
At its simplest, de-dollarization means reducing dependence on the U.S. dollar in investments, trade, reserves, and financial transactions. J.P. Morgan describes it as a “significant reduction in the use of dollars in world trade and financial transactions,” lowering demand for dollar based assets over time.
For wealthy investors, this often means reducing exposure to dollar denominated investments, spreading wealth into different currencies, or shifting money into non U.S. markets.
More than a quarter of family offices surveyed by UBS said they plan to lower holdings of dollar denominated assets. Nearly half said they believe they are already overexposed to the dollar. Even more striking, roughly two thirds said they expect confidence in the dollar’s reserve role to weaken.
This does not necessarily mean they think the dollar will fail. Instead, many see excessive concentration in one country and one currency as dangerous.
The Specifics
Several concerns are driving the trend.
First is geopolitical instability. Family offices ranked geopolitical uncertainty as their number one concern both in the next 12 months and over the next five years. Wars in Ukraine and Iran, global trade tensions, changing tariffs, immigration conflicts, and rising tensions between major powers are creating a more unpredictable investing environment. UBS described today’s landscape as one of “elevated and interconnected risk.”
Second is concern over rising U.S. debt and bond yields. Investors increasingly worry that Washington’s debt burden and political dysfunction could eventually undermine confidence in U.S. financial assets. Brookings notes that fiscal instability, rising debt levels, ratings downgrades, and government dysfunction could gradually weaken trust in the dollar over time.
Third is fear of overvalued American markets. Reuters reported that some investors believe U.S. technology stocks, powered by the artificial intelligence boom, have become too expensive and concentrated. The S&P 500 trades at significantly higher valuations than many foreign markets, making overseas investments appear more attractive by comparison. Europe, Japan, and some emerging markets offer cheaper valuations and stronger recent performance in some sectors.
Another factor is simply diversification. UBS says the new catchphrase among wealthy investors is “jurisdictional diversification,” meaning money is spread across multiple countries to hedge against political or financial disruptions. About two thirds of family offices now maintain assets in at least three jurisdictions, while nearly one third operate in four or more.
What Currencies Are Investors Choosing Instead?
When wealthy investors move away from the dollar, they are not simply stuffing money under mattresses overseas.
According to UBS, the two preferred currencies for diversification are the Swiss franc and the euro. Switzerland’s reputation for financial stability, political neutrality, and disciplined banking gives the franc appeal during periods of uncertainty. The euro remains attractive because it represents a large, developed economic bloc and serves as the second most important reserve currency in the world.
J.P. Morgan also notes that central banks are slowly diversifying reserves into other currencies, including the Chinese yuan and several “nontraditional currencies.” Gold is increasingly viewed as another alternative, especially by emerging market central banks concerned about heavily indebted governments and geopolitical risk. UBS found wealthy families are also adding to infrastructure investments and gold holdings while reducing some real estate exposure.
At the same time, experts caution that the yuan still faces major limitations because China maintains strict controls on capital movement, making it difficult to move money freely. Brookings argues that while the dollar’s market share has slipped, competitor currencies still lack many of the advantages that made the dollar dominant.
Could This Hurt the U.S. Economy?
If de-dollarization accelerates significantly, the consequences for the United States could be serious.
J.P. Morgan warns that large scale reallocation away from dollar assets could pressure U.S. stocks and bonds. Foreign selling of Treasury debt could push yields higher, making borrowing more expensive for the government, businesses, and consumers. Rising yields often translate into higher mortgage rates, more expensive business loans, and greater debt servicing costs.
A weaker dollar could also reduce the special advantages the United States enjoys from having the world’s reserve currency. Brookings calls this America’s “exorbitant privilege,” allowing the country to borrow more cheaply, finance deficits more easily, and maintain enormous influence over global finance. A weaker reserve role could gradually chip away at those benefits.
Yet experts also caution against exaggeration. J.P. Morgan stresses that despite de-dollarization trends, the dollar still dominates world trade, foreign exchange markets, reserves, and debt issuance. The dollar remains involved in roughly 88% of foreign exchange trading and continues to play a dominant role in global finance. Brookings similarly argues that no competing currency currently possesses the same combination of stability, liquidity, scale, and institutional trust as the dollar.
A Warning, Not a Collapse
The wealthy are not fleeing America overnight. Even UBS advisors caution that this is not a wholesale “sell America” trade. Many wealthy families, especially U.S. based ones, continue to invest heavily in American markets. U.S. family offices actually increased their average domestic exposure from 86% to 88% in the past year.
But the broader trend still matters. Some of the world’s smartest and richest investors are signaling concern about concentration risk, geopolitical instability, and the long term outlook for debt and global power shifts. Rather than betting everything on one country or one currency, they are quietly diversifying.
In that sense, de-dollarization may not be a prediction of American decline as much as it is a hedge against uncertainty. For the wealthy, the message appears simple: hope the dollar stays dominant, but prepare for a world where it may not be quite as dominant as before.
