In Multicurrency Mercantilism, Kathleen Tyson argues that the global monetary system is shifting away from the long-standing dominance of the US dollar and entering a phase where many currencies compete for trade settlement, reserve status and financial infrastructure. She terms this emerging structure “multicurrency mercantilism”, meaning that states and firms increasingly choose among currencies for strategic, commercial and fiscal reasons rather than relying solely on one hegemonic currency. 

Tyson opens by diagnosing the old order: for decades the dollar served as the de facto global reserve and settlement currency. That structure gave the United States enormous leverage via seigniorage, capital flows and policy influence. But that era, she argues, is ending. The push factors include growing US deficits, sanctions risk, financial system over-engineering and the erosion of dollar clearing advantage. The pull factors include emerging market states’ desire for currency sovereignty, regional payment infrastructures, digitised national rails and commodity pricing denominated in non-dollar currencies. 

Tyson’s book is structured around several key themes. First, the move from trade settlement in the dollar (and euro) to local or regional currencies. She explains that trade is easier to adjust than capital markets: changing invoicing and settlement currency is feasible in a bilateral deal, whereas rebuilding deep bond, derivatives or clearing markets is far harder. Her core point: trade leads, markets follow. 

Second, she emphasises the infrastructure dimension. Payment systems, central bank swap lines, clearinghouses and securities depositories matter because they are the plumbing of finance. Without new rails and settlement networks, currency choice remains theoretical rather than operational. 

Third, she explores fiscal and state sovereignty implications: when exports are settled in local currency, tax collection improves, currency mismatch risk declines and states gain more control over their domestic economy. 

The book gives case studies of early movers: states affected by sanctions altered settlement patterns; commodity trade hubs considered local currency pricing; regional blocs discussed bilateral payment systems. Tyson argues these are not fringe developments but early signals of systemic change. She emphasises that this transition will be gradual and uneven. The dollar will not vanish overnight; instead, many currencies will co-exist and trade, finance and reserves will become more diversified.

From a policy and practitioner perspective Tyson’s message is clear: the world of currency choice matters. Regulators, financial strategists and corporate treasurers must map their exposure to dollar dominance, assess infrastructure dependence, understand currency risk and develop resilience. The book is strong in framing the challenge, offering a lens for horizon scanning and giving useful strategic direction.

In summary the book, which was self-published in 2023, gave early indications of why the US dollar’s dominance is under pressure, what forces are driving change and how infrastructure, trade settlement and state strategy combine. For anyone working in finance, macro-policy, trade or regulatory strategy the book offers an important vantage point. From the hindsight of the last 25 years, it looks every year clearer that the US dominance is dwindling and that the post-WW2 institutions are getting exhausted. For professionals monitoring the changing currency ecosystem it is a valuable map.