US Dollar Under Threat As Chinese Yuan Grows Stronger in Global Trade
The US economy and power is under threat due to the massive De-dollarisation of global trade. The decision by Russia to use the Chines Yuan as its major trading currency means the Chinese currency is becoming a threat to the dominance of the US dollar in global trade and finance.
What this means is that soon more and more countries will be using the Yuan for international payments and transactions instead of the usual dollar.
Other countries that are likely to opt for the Yuan for their international financial transactions include Saudi Arabia and Iran, which are seriously considering an Economic Alliance with China and Russia. Thus, the BRICS countries are on the verge of destabilizing the US dollar as more and more countries are expected to align with them. The BRICS countries which are Brazil, Russia, India, China, and South Africa.
Another critical issue is that these five countries remain the world’s top emerging economies.
The United States stands to lose its dominance as a super economic and political power if the BRICS gets stronger and topples the dollar with either the Chinese Yuan or a new currency of its own.
Reacting to the danger that the BRICS countries pose to the US economy, Monica Crowley, who is a former Assistant Treasury Secretary, disclosed that the Dollar has remained the world’s safest currency since the end of World War II but that dominance was gradually fading out. Currently, the dollar has had no hard assets like gold backing it for the last 50 years. This in itself is problematic now given that the substitute for gold, which was the strong economic power of the United States, is under threat. She added that since oil was also traded in dollars, it gave the currency that deserved dominance, however the current trend does not look favourable for the dollar.
She predicted that the US dollar would come to a halt as a hard currency if the trading in oil via the US dollar ends. Furthermore, she described what is happening to the US dollar as a perfect storm.
The world’s reserve currency (US Dollar) has been abused by the US, according to Monica Crowley, through reckless monetary and fiscal policies which led to the devaluation of the dollar.
According to her, the perfect storm is President Joe Biden’s weakness, which is seen in domestic energy production, the Ukraine war, and America’s enemies led by China firming a new Economic Bloc.
READ:Bawumia Arrested Liberian Dollars Not US Dollars – John Mahama Mocks Vice President.
There is beginning to be a global shift from the use of the US dollar. If this new economic bloc starts to trade in oil using other trading currencies than the dollar, which will lead to sky-high inflation in America.
America is more likely to lose its economic dominance in the global space, just us its superpower status, she added.
Indeed, the US Dollar Under Threat As Chinese Yuan Grows Stronger in Global Trade
Holy shite Fox News covering de-dollarisation saying there’s a massive risk and US power is under threat#dollar #Currency #Empire #Asiancentury #BRICS
pic.twitter.com/BRx9tQKUgd— Ash Kaira (@ashkairaa) March 27, 2023
