More Countries are Now Abandoning US Dollar. Is the End Near?
Ron Paul (former Congressman from Texas) once gave a speech called “The End of Dollar Hegemony,” where he pointed out the ONE THING that would precipitate the US dollar’s collapse. Here’s the relevant part:
For now, the US dollar’s status as the leading global reserve currency is assured, says The Financial Times. “It still makes up a majority of foreign exchange reserves and dominates trade invoicing.”…”The US Dollar’s status is safe for now.”
The Wall Street bank warns that the greenback could lose its global dominance.
FT, an influential paper, said: Russia’s invasion of Ukraine has created a new kind of war – the weaponization of the US dollar to punish the west’s adversaries. For further read check this out >> Weaponization of finance: how the west unleashed ‘shock and awe’ on Russia.
Russia and India reportedly has completed a trade agreement in rubles and Indian rupees, excluding the euro and the US dollar from cooperation. Saudi Arabia is said to be considering accepting Chinese yuan as a payment method for oil sales to China. Will such a switch put a dent in the US dollar’s global dominance?
According to a new study by the International Monetary Fund, the dominance of the US dollar has dropped from 71% in 1999 to 59% in 2021- a 12 percentage points decline. About a quarter of the decline can be accounted for by greater use of the Chinese renminbi.
According to Dmitry Medvedev (Deputy Chairman of the Security Council of Russia), “the era of regional currencies is coming” because confidence in reserve currencies is melting away, “abandoning the dollar and the euro does not look like a fantastical prospect”.
Kremlin warns West: “President Vladimir Putin’s rouble payment scheme for natural gas is the prototype that the world’s largest country will extend to other major exports because the West has sealed the decline of the US dollar by freezing Russian assets, the Kremlin said.”