The collapse of the dollar is almost inevitable
US withdrawal from nuclear deal with Iran seriously worsened US-European relations. Recently, the United States and EU countries have been in very strained relations, which is connected with the trade war unleashed by US President Donald Trump almost against the whole world, and with the anti-Russian sanctions that the United States literally impose on Europe. Leaving the nuclear deal with the United States, Trump immediately threatened sanctions to all countries that would not interrupt their cooperation with Iran.
This policy The USA caused deep rejection from the leading states of Europe. In Brussels, negotiations were held between the Ministers of Foreign Affairs of France, Germany, Britain and Iran. They discussed oil trade between Iran and European countries. Now Iran supplies about 350-500 thousand barrels per day to Europe. In the case of compliance with US sanctions, a shortage of oil may arise in Europe. Therefore, in France, Germany and even Great Britain, they do not agree with American sanctions against Iran. But what can Europe do to protect its economics from US aggression?
Oddly enough, but the sanctions imposed by Trump can hit more likely on the American economy itself. Now in Europe, the issue of transferring trade operations with Iran to settlements in euros is being discussed. This will allow European states to make payments through their own banks and not worry about the fact that the United States may interfere with trade operations. But the transfer of oil transactions to settlements in euros automatically weakens the position of the American currency in international markets. This is beneficial for Europe, since in this case, the euro is strengthening, economic and financial independence from the United States is increasing. Of course, settlement with Iran in euros will not lead to any large-scale consequences for the United States and the position of the US dollar, but it can become a “pilot” experience for further changes in the financial policies of European states.
The gradual abandonment of settlements in dollars is the cherished goal of many countries of the world, including not only Russia, China or Iran, but also the EU states. Now 60% of all world currency reserves are stored in dollars, while the euro accounts for only about 20%. Of course, this situation cannot suit European countries. Not so long ago, a number of national banks of the world announced the prospects of reducing dollar reserves and increasing reserves in euros. The EU wants to see the euro as a serious rival to the dollar, especially since there is every reason and even opportunity for this. The strengthening of national currencies, especially as a means of international settlement, is a serious blow to the dollar, which sooner or later could cause the beginning of the collapse of American financial hegemony.
By the way, not only Europe is going to abandon dollar payments. For example, the oil trade between Russia and China is gradually shifting to payment in RMB, and the Shanghai Yuan recently launched oil futures on the Shanghai Stock Exchange. But should we expect a quick end to the dollar era? It will show time.
This policy The USA caused deep rejection from the leading states of Europe. In Brussels, negotiations were held between the Ministers of Foreign Affairs of France, Germany, Britain and Iran. They discussed oil trade between Iran and European countries. Now Iran supplies about 350-500 thousand barrels per day to Europe. In the case of compliance with US sanctions, a shortage of oil may arise in Europe. Therefore, in France, Germany and even Great Britain, they do not agree with American sanctions against Iran. But what can Europe do to protect its economics from US aggression?
Oddly enough, but the sanctions imposed by Trump can hit more likely on the American economy itself. Now in Europe, the issue of transferring trade operations with Iran to settlements in euros is being discussed. This will allow European states to make payments through their own banks and not worry about the fact that the United States may interfere with trade operations. But the transfer of oil transactions to settlements in euros automatically weakens the position of the American currency in international markets. This is beneficial for Europe, since in this case, the euro is strengthening, economic and financial independence from the United States is increasing. Of course, settlement with Iran in euros will not lead to any large-scale consequences for the United States and the position of the US dollar, but it can become a “pilot” experience for further changes in the financial policies of European states.
The gradual abandonment of settlements in dollars is the cherished goal of many countries of the world, including not only Russia, China or Iran, but also the EU states. Now 60% of all world currency reserves are stored in dollars, while the euro accounts for only about 20%. Of course, this situation cannot suit European countries. Not so long ago, a number of national banks of the world announced the prospects of reducing dollar reserves and increasing reserves in euros. The EU wants to see the euro as a serious rival to the dollar, especially since there is every reason and even opportunity for this. The strengthening of national currencies, especially as a means of international settlement, is a serious blow to the dollar, which sooner or later could cause the beginning of the collapse of American financial hegemony.
By the way, not only Europe is going to abandon dollar payments. For example, the oil trade between Russia and China is gradually shifting to payment in RMB, and the Shanghai Yuan recently launched oil futures on the Shanghai Stock Exchange. But should we expect a quick end to the dollar era? It will show time.
Information