SPUTNIK
The undisputed dominance of the US is receding: even though nations across the world are unlikely to refuse the greenback in the near future, the trend is clear, DC-based think tank Responsible Statecraft has warned.
The de-dollarization trend seems to be unstoppable, as countries of the world have been striving to reduce their dependence on the greenback, concludes a Washington, DC think tank, blaming the development on the US' weaponization of its currency.
The think tank noted that the process of "de-dollarization" is gaining steam, with the countries of the Global South looking for alternatives to the greenback. The US scholars refer to world statistics indicating that the share of global reserves held in US dollars has contracted from 73% in 2001 to 58% in 2023.
The trend has gained momentum since the Biden administration's decision to slap sweeping sanctions on Russia and unplug it from the global financial system, according to the scholars. Washington's move has rattled many emerging economies, prompting them to seek alternatives, they say.
Last month, Treasury Secretary Janet Yellen admitted that Washington's policy of imposing sanctions on its rivals around the world could weaken the greenback's dominance.
She went on to say that Washington’s economic warfare "does create a desire on the part of China, of Russia, of Iran to find an alternative" to the US currency.
Challenging Yellen's stance, the think tank drew attention to the fact that the dollar's use as a "blunt instrument of statecraft" is giving both US allies and rivals "an opening to look for alternative settlement mechanisms."
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