Disaster Democrat Biden’s Actions are Behind the Collapsing Dollar

The US dollar, as the international reserve currency, has long served as an essential medium of exchange between countries with different national currencies. To fulfil this role, a reserve currency needs to be stable, safe and easily accessible to all countries. In the 20th Century, the dollar’s international status caused it to grow in value, enabling the US to bear huge levels of foreign debt.

Naturally, therefore, any report that a country disagreeing with Washington’s policies may turn to payments in its own currency instead of the US dollar is a source of undisguised alarm in the West. But now it is clear to everyone that the US dollar is losing its global position and its status as the world’s reserve currency of choice.  And Washington’s inability to maintain the growth of the global economy and deglobalization are not the only causes of this phenomenon.

As the world is splitting up into different currency zones – a process that is accelerating – major powers are forced to seek investment and focus on their own economic development. Seven years ago China began to promote its own national currency, which resulted in the International Monetary Fund including the yuan in its basket of five leading currencies. Over the years many countries have begun to increase the amount of yuan in their currency reserves, scale down their use of the dollar in international transactions and create alternative payment systems. Accordingly, many central banks have begun to divest themselves of dollars, and increase their reserves of rupees, yuan, euros and gold bullion.

At the moment the members of the Eurasian Economic Union (EAEU) have reached a key stage in their bid to reduce their dependence on the US dollar, and have agreed to introduce national currencies, including the Russian ruble, into payments between member states. “This has led to the creation of a unified ruble zone,” as Maksim Reshetnikov, Russian Minister of Economic Development commented in a recent interview to the Rossiya-24 television channel. He added that the customs duties received by each country would be distributed between the member states in the proportions set out in the EAEU Treaty. In the past foreign currencies were used for this purpose, but now the EAEU national currencies, including the Russian ruble, is used.

Saudi Arabia is unhappy with the United States’ policies, and hopes to begin using the yuan for oil sales to China.

One factor that has boosted the move away from the dollar in recent weeks is the US president Joe Biden’s decision to introduce currency sanctions against Russia. India was among the countries that abstained from voting on the UN resolution condemning Russian for its special military operation in Ukraine. It was also one of the first Asian countries to feel the effect of the unprecedented economic sanctions launched by the US and its western allies against Russia. According to leading Indian media sources, the exclusion of a number of leading Russian banks from the SWIFT system led to a breakdown of payments under trading agreements between India and Russia. India is therefore working on developing ways of continuing to work with Russia under the current sanctions regime, specifically abandoning the US dollar and instead using rubles and rupees for payments between the two countries. Once in effect, this transition would have the additional advantage of allowing Delhi to purchase Russian crude oil and petroleum products at a discount. India is the world’s third largest importer of oil, and under the highly attractive terms proposed by Moscow it would be able to import up to 15 million barrels of Russian crude oil…..

https://journal-neo.org/2022/03/23/biden-s-actions-are-behind-the-collapsing-dollar/

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