Editorial

Dollar global dominance and next

Written by The Frontier Post

Russian President Vladimir Putin has said that the value of the dollar as a reserve currency has undermined by the policy of the US authorities, because of the sanctions, Russia is forced to switch to settlements in national currencies with its partners, and the tendency to move away from the dollar will continue if Washington does not change its policy. Putin was speaking to a plenary session of the Russia Calling Investment Forum 2021 held in Moscow on Tuesday. Putin stressed that Russia does not want to leave settlements in dollars and the main Russian oil and gas companies are making settlements in the US currency, but the United States does not give Moscow the opportunity to settle in dollars with its partners in the military-industrial complex. Putin accused American authorities of creating problems for others which is causing a decrease in the volume of settlements in dollars throughout the world, while the share of the pound and the yen in the world gold reserves is increasing day by day. According to him, Arab countries are thinking about creating their own reserve currency, while Europe is already making settlements in Euro or in national currencies.
In fact, the US dollar has ruled the global currency market over the last several decades and the nations around the world have been using the American dollar for transactions of their bilateral trade and exchange reserves. There had been wide and motivated outrage against the monopoly of dollars in the world but the world nations were not having any other alternative to it therefore the centrally planned US economy had been continuously flourishing over the past decades. The initiation of US’s trade war against China and Russia had sensitized these nations to use other means for bilateral transactions to end the monopoly of dollar in the world economy. Although the dollar is still maintaining its global dominance in the world, the current international scenario is indicative of the fact that regional organizations such as SCO and Arab League can originate their currencies for regional trade and investments in the days ahead.

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The Frontier Post

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