De-dollarization will be a vicious cycle as hyperinflation leads to higher rates that will further erode the greenback's power, think tank says

• De-dollarization could lead to a vicious cycle of economic destruction, according to an Australian economic think tank.
• That's because waning use of the dollar could bring on hyperinflation, researcher Michael Roach said.
• Hyperinflation could lead to higher interest rates, which will weigh on asset prices, according to Roach.

The use of the US dollar as a reserve currency is under threat — and the greenback is headed for a vicious cycle that will further erode its dominance, according to the Australian think tank the Lowy Institute.