JPMorgan says the biggest risk of de-dollarization isn't a rival currency — it's that the US could lose a key tool it's used to fight past economic crises

• The biggest risk of de-dollarization is that the US could lose a key tool it's used to fight past crises, JPMorgan said.
• De-dollarization risks mostly relate to inflation and debt burdens, strategists said.
• The dollar's dominance has helped Western central banks employ monetary and fiscal measures during crises.

The biggest risk of de-dollarization isn't a rival currency — it's that the US could lose a key tool it's used to fight past economic crises, according to JPMorgan.

According to a note on Tuesday, strategists led by Marko Kolanovic said de-dollarization risks are unlikely to mean emerging powers will suddenly stop using the dollar or replace it with another currency.