20251021 alternative to DXY

par | Oct 21, 2025 | Uncategorized | 0 commentaires

🧭 Why Not DXY?

The DXY is the most common reference for the USD’s value — but it’s biased:

  • It’s heavily weighted toward the euro (≈58%), with smaller weights for yen, pound, Canadian dollar, Swedish krona, and Swiss franc.

  • It excludes major emerging market currencies like the Chinese yuan, Indian rupee, and Mexican peso, which now play major roles in trade.

  • So it doesn’t reflect the global dollar value anymore.


🔁 Alternative Referential Bases to Compare USD Without DXY

Here are several alternative benchmarks (non-DXY) you can use to evaluate the dollar’s decline or strength more neutrally:


1. Trade-Weighted U.S. Dollar Index (TWEXBPA or Broad Dollar Index)

  • Published by: U.S. Federal Reserve (FRED series: DTWEXBGS or DTWEXBPA).

  • What it measures: The dollar’s value against a basket of currencies weighted by U.S. trade volume, not just developed markets.

  • Why it’s better: Includes China, Mexico, Korea, India, Brazil, etc.

  • Base: 2006 = 100 (Fed standard).
    ✅ Best for real-world trade competitiveness analysis.


2. IMF’s SDR (Special Drawing Rights)

  • What it is: A basket-based “supranational currency” made of USD, EUR, CNY, JPY, and GBP.

  • To measure USD fall: Compute the USD/SDR exchange rate — when USD weakens, 1 SDR costs more in dollars.

  • Where to get it: IMF publishes daily SDR/USD data.
    ✅ Best for a neutral, multi-currency base.


3. Gold (XAU/USD) as Base

  • Idea: Use gold as a neutral, non-fiat benchmark.

  • Measure: The inverse of XAU/USD — if gold rises vs USD, the dollar is falling in real terms.
    ✅ Best for monetary or inflation-adjusted comparisons.


4. Commodities Basket Index

  • Use a broad commodity index like the Bloomberg Commodity Index (BCOM) or CRB Index, denominated in USD.

  • Then calculate relative change vs a non-USD base, e.g. EUR or CNY equivalents.
    ✅ Best for purchasing power comparisons — how many barrels or bushels a dollar buys.


5. BIS Effective Exchange Rate (EER)

  • Published by: Bank for International Settlements.

  • Two versions: Nominal and Real EER (inflation-adjusted).

  • Measures the dollar’s value against a global weighted basket of currencies.
    ✅ Best for macroeconomic and long-term trend analysis.


6. Synthetic Multi-Currency Basket (Custom Index)

You can create a custom referential like this:

 

USDindex=0.4×EUR/USD+0.2×CNY/USD+0.15×JPY/USD+0.15×GBP/USD+0.1×INR/USDUSD_{index} = 0.4 \times EUR/USD + 0.2 \times CNY/USD + 0.15 \times JPY/USD + 0.15 \times GBP/USD + 0.1 \times INR/USD

 

That gives you a more balanced “non-DXY” composite index based on your chosen trade or investment exposure.


⚙️ Practical Comparison Example

Referential Symbol USD Fall Interpreted As Source
Trade-Weighted Dollar Index DTWEXBGS Decline in global purchasing power Federal Reserve
USD/SDR IMF SDR Rate USD weaker vs global basket IMF
XAU/USD Gold price up Dollar weaker in real terms LBMA
BIS Real EER Inflation-adjusted USD fall BIS
Synthetic Basket Custom Depends on weighting User-defined

“Is there any globally used material or energy whose value or trade doesn’t depend on the USD?”

In other words — a truly universal commodity that is:

  • demanded everywhere (industrial, energy, or food use), and

  • priced, traded, or settled in something other than U.S. dollars.

Let’s go step-by-step.


🌍 1. Why almost all global materials follow USD

Most global commodities — oil, gas, metals, grains — are dollar-denominated because:

  • The petrodollar system (1970s) linked oil to USD pricing.

  • Commodity exchanges (CME, ICE, LME) settle in USD.

  • The USD remains the dominant settlement and reserve currency (>80% of global commodity trade).

So even if a country trades in euros, yuan, or rupees, the reference price is usually set in USD, then converted.

That said — some cracks in the USD system have appeared, mainly led by China, Russia, and some BRICS countries.


⚡ 2. Examples of major materials/energy not strictly following USD

Material / Energy Where It’s Used USD Independence Reference / Notes
Shanghai Crude Oil (INE) Oil (energy) 🟡 Partial Priced & settled in CNY (yuan) on China’s INE exchange since 2018. Growing share of Asia’s oil trade references it.
Shanghai Gold Benchmark (SGE) Precious metals 🟡 Partial Set in CNY, independent of London USD fix. Used by Chinese, Russian, and Middle Eastern buyers.
Uranium (Kazatomprom contracts) Nuclear energy 🟡 Partial Some long-term deals priced in EUR or CNY, especially post-2022 sanctions. Still small market.
Russian Natural Gas (Gazprom exports) Energy 🟢 Strong Many contracts now settled in ruble (RUB) or CNY, not USD, esp. for China, India, Turkey.
Lithium (China’s spot market) Batteries / EVs 🟡 Partial CNY-based contracts on Asian Metal and Guangzhou Exchange dominate spot pricing.
Rare Earth Elements (REEs) Electronics / defense 🟡 Partial China controls 80–90% of supply; priced in CNY domestically, but converted to USD in exports.
Electricity / Carbon Credits (EU ETS) Energy / emissions 🟢 Strong Entirely EUR-denominated market; has no USD linkage.
IMF SDR-linked trade instruments Macro finance 🟢 Strong Used for intergovernmental or development transactions; neutral to USD.

🧩 3. Materials/markets most “de-dollarized”

If we rank them roughly by independence from USD:

Rank Sector Referential Currency Independence
🥇 EU Carbon / Power (EU ETS) EUR Very High
🥈 Russian Energy (oil/gas to Asia) CNY / RUB High
🥉 Shanghai Gold / Oil CNY Medium-High
4️⃣ Lithium / REEs CNY Medium
5️⃣ Global Grains / Metals USD Low

🔮 4. Emerging “neutral” pricing trends

  • BRICS Pay & BRICS currency discussions target commodity trade in local or basket currencies.

  • India and UAE have settled oil in INR–AED cross-payments (no USD).

  • Africa and South America are developing regional currency settlement systems (e.g., Pan-African Payment and Settlement System).

So while no material is universally used and fully detached from USD yet,
the most advanced non-USD referentials are:

  • Energy: CNY-based crude/gas markets

  • Precious metals: CNY or EUR gold fixings

  • Environmental commodities: EUR (carbon credits)


⚖️ 5. If you want a neutral, global measure of value

You can use “energy equivalence” or “metal equivalence” pricing, e.g.:

 

1 MWh equivalent in copper or oil(not denominated in any currency)\text{1 MWh equivalent in copper or oil} \quad \text{(not denominated in any currency)}

 

 

That’s sometimes called a “real resource index” — e.g. comparing lithium, copper, and energy in physical ratios, avoiding all fiat bases.

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