De-dollarization is apparently here, “like it or not,” as a May 2023 video by the Quincy Institute for Responsible Statecraft, a peace-oriented think tank based in Washington, D.C., states.
Until recently, the global economy accepted the U.S. #dollar as the world’s reserve #currency and the currency of #international #transactions. The central banks of Europe and Asia had an insatiable appetite for dollar-denominated U.S. #Treasury securities, which in turn bestowed on #Washington the ability to spend money and finance its debt at will. Should any country step out of line politically or militarily, Washington could sanction it, excluding it from the rest of the world’s dollar-denominated system of global trade.
But for how long? After a summit meeting in March between #Russia’s President Vladimir Putin and China’s President Xi #Jinping, #Putin stated, “We are in favor of using the Chinese yuan for settlements between Russia and the countries of #Asia, #Africa, and #LatinAmerica.” Putting that statement in perspective, CNN’s Fareed Zakaria said, “The world’s second-largest economy and its largest energy exporter are together actively trying to dent the dollar’s dominance as the anchor of the international financial system.” Already, Zakaria noted, Russia and China are holding less of their central bank reserves in dollars and settling most of their trade in yuan, while other countries sanctioned by the United States are turning to “barter trade” to avoid dependence on the dollar.
Quincy is not alone in discussing #de_dollarization.
#economy
https://www.counterpunch.org/2023/06/26/are-we-living-through-a-de-dollarization/
