Read different websites and get different stories. Many prominent financial experts are absolutely convinced that the dollar is gasping its last breaths, including Forbes.
During a three-day state visit, Chinese President Xi Jinping held friendly talks with Russian President Vladimir Putin in a show of unity, as both countries increasingly seek to position themselves as leaders of what they call a “multipolar world order,” one that challenges U.S.-centric alliances and agreements.
Among those agreements is the petrodollar, which has been in place for over 50 years…
…Putin couldn’t have been more explicit. During Xi’s state visit, he named the Chinese yuan as his favored currency to conduct trade in…
…other major OPEC nations and BRICS members (Brazil, Russia, India, China and South Africa) are either accepting yuan already or strongly considering it. Russia, Iran and Venezuela account for about 40% of the world’s proven oilfields, and the three sell their oil in exchange for yuan. Turkey, Argentina, Indonesia and heavyweight oil producer Saudi Arabia have all applied for admittance into BRICS, while Egypt became a new member this week.
What this suggests is that the yuan’s role as a reserve currency will continue to strengthen, signifying a broader shift in the global power balance and potentially giving China a bigger hand with which to shape economic policies that affect us all.
Forbes says that the US dollar is still the world’s reserve currency. For now. But to lose that status would be utterly devastating to our already shaky economy. If the world no longer trades in petrodollars, then the dollar is no longer the world’s reserve currency.
At the same time, other experts have pooh-poohed the idea that the petrodollar might be no more and the petroyuan was ready to jump into its place. Writers from both Barron’s and Bloomberg are confident that the petroyuan is a myth.
You should certainly do your own research about this topic, but the fact that other countries are ready to ditch the dollar is very concerning. This makes tangible assets like gold and silver among the only safe options to hold wealth.
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