The US dollar-denominated financial system has begun to show fissures around the world and these fissures are growing, notes one of China’s top digital issues, Phoenix, adding that this is a lesson for the dollar whose end is accelerated by the loss of confidence in the US currency.
According to the article, in recent years, countries that oppose the US have actively sought opportunities to create a reserve currency and abandon the dollar.
“The oil trade between Russia and China is already realized without the participation of the dollar: countries have intensified the extraction of resources and started to buy more gold to prepare for the collapse of the American currency,” the portal said .
The tendency to abandon the dollar clearly indicates the diversity of world currencies that can replace it, such as the Euro and the Chinese yuan.
The author recalled that after the US exit from the nuclear agreement with Iran, the European Union intends to buy oil without using the dollar.
After Russia and China decided to switch to using the yuan instead of the dollar, a wave of “de-dollarization” has covered the world, the paper’s author said. Iran, Venezuela, Angola, Indonesia, Malaysia, Thailand and Pakistan have already expressed their desire to abandon the dollar or reduce their use in the oil trade and other financial transactions.
At the same time, being the world’s main reserve currency, the dollar can influence the situation through the SWIFT system and indirectly control international bank payments. That is, if one of the major economies of the world wants to get rid of the control of the dollar, it will immediately be subject to the restrictions imposed by SWIFT, which will prevent payments from being made with other countries.
According to the edition, this is one of the reasons that led Russia to study ways to carry out transactions in the national currency.
“Russia understands that, under the pressure of the petrodollar, its economy is in danger of being strangled,” quotes the book “The Currency War” by Jim Rickards. In this context, the author proposes to create “a globally competitive and gold-backed new currency that is strong enough to overturn the dollar system.”