The European Union is studying the possibility of replacing dollar payments with euros because of Washington’s threats to impose sanctions on European companies working in Iran, experts, including Fort Russ’ own, say.
By applying this measure, the European Union could retain one of the largest markets that was established after the nuclear agreement between Tehran and the P5 + 1 powers (China, France, Russia, United Kingdom, USA and Germany) was signed.
It is important to recognize that the idea of reducing the influence of the dollar in international transactions is not new. In addition to the EU, a number of countries are evaluating this idea. Breaking away from the dollar is one of the milestones of emerging multipolarity in international relations.
Currently, Iran is under maximum US pressure, which has also inspired it to abandon the US currency. In this way, Tehran has already partially transformed its business to avoid the use of the dollar, the president of Competence Finance SAS, Alexandre Kateb, said.
“When Iran found itself under sanctions between 2012 and 2015, it has established new mechanisms to circumvent US-related financial institutions, such as barter operations and the use of alternative currencies to the dollar,” he said.
At the same time, the recent launch of China’s petroyuan represents an initial step to end the supremacy of the US currency, said Stephen Innes of the financial company OANDA.
According to these experts, bilateral and multilateral trade agreements will become the main factor that will lead to the weakening of the dollar in international trade.
“It will depend on the instruments of influence of the EU, UK, Russia and China. The possible scenario is diversification, bilateral agreements between partners or regional agreements that will replace multilateral contracts that contribute to the dominance of the US currency,” Ramaa Vasudevan, professor of economics at the University of Colorado (USA), said.
In addition, it should be borne in mind that the financial world itself is changing drastically, which is due, among other things, to the development of blockchain technology.
Analysts recognize that it will not be easy to deal with the dominance of the dollar and stress that the American currency took about a century to leave behind the British pound. The dollar still has overwhelming influence on the global economy.