Sputnik
A US-dominated monetary framework was put into place 80 years ago in Bretton Woods. It bred everything ranging from chronic deficits and speculative bubbles to politically-motivated sanctions, while allowing the greenback to reign supreme. Since the system’s collapse, global economies have been dealing with the blowback of its inherent failings.
Since the US dollar was made the “de facto steward of the global economic system” by the Bretton Woods Agreement it has abused that role, Paul Goncharoff, chief manager of consulting firm Goncharoff LLC, told Sputnik. The greenback has degenerated into a “unipolar and unreliable, politically weaponized” tool, he noted.
The creation of BRICS has motivated many countries to embark on an organized effort to dedollarize and break free from the vicious political cycle, as pointed out by the experienced financial analyst.
“The "extraordinary privilege" enjoyed by the USD as the lead global reserve currency has over time tested the discipline, resolve, and trust of the United States government… It was found wanting, as what should have been economically sound objective decisions steadily degenerated into politically "weaponized" short-term actions that were hugely expensive for the rest of the world,” he said.
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