How soon will the dollar be destroyed?
Over the past few years, the seventy dollar has dominated the world as the main currency in which payments are made in international trade and which is stored by national banks of the world as a strategic reserve. But recently, this established position is giving an ever greater crack.
Interestingly, the United States itself, blaming the thoughtless policies trade wars and economic sanctions. For example, the sanctions against Russia and Iran, and then Turkey, as well as the trade war with China, are pushing the listed countries to start paying among themselves in national currencies, and not in dollars.
China and Russia have long been negotiating to convert national trade into rubles and yuan, moreover, many transactions are already underway without using the US dollar as a unit of account. The Shanghai stock exchange began trading oil futures in RMB. And this is just the beginning. It is possible that soon Turkey will try to switch to the use of the national currency in international transactions - if there is an obstacle to this, then it lies in the instability of the Turkish lira.
Russian Foreign Minister Sergei Lavrov recently said that the dominance of the dollar as a global reserve currency will soon come to an end. Meanwhile, back in the middle of the twentieth century, it was proved that the conversion of any national currency into an international reserve currency entails a deficit in current operations. That is, from such a situation problems arise for the owners of the "printing press" themselves.
Dollars flow out of the country, as they are attracted by other states as a reserve currency and are deposited in the accounts of foreign national banks. It is likely that Trump himself, well aware of the negative consequences of the trade deficit, is trying to somewhat weaken the position of the dollar as the world reserve currency - after all, this is a matter of developing the American economy, which today has serious competitors.
Now the United States, using the dollar, is trying to put more pressure on other countries and large corporations, promising problems to everyone who does not support the anti-Iranian, anti-Russian and anti-Turkish sanctions introduced by Washington. Say, now America is threatening all those global market players who continue to trade with Tehran, the possible freezing of their dollar accounts.
This measure is at first glance effective, but in reality it can lead to big problems just for the United States itself. After all, the use of the dollar as an instrument of political games only weakens its position and the credibility of world business on it. You never know what sanctions Washington will decide in the near future. Therefore, in the future, both states and corporations will prefer not to take risks and begin to experiment with transactions in other currencies - less problematic.
However, for the time being, even the euro, not to mention the yuan, is out of the question about genuine competition to the dollar. So if China and Russia will be able to undermine the power of the American currency, pushing the dollar to a secondary position, then this will not happen so soon.
Interestingly, the United States itself, blaming the thoughtless policies trade wars and economic sanctions. For example, the sanctions against Russia and Iran, and then Turkey, as well as the trade war with China, are pushing the listed countries to start paying among themselves in national currencies, and not in dollars.
China and Russia have long been negotiating to convert national trade into rubles and yuan, moreover, many transactions are already underway without using the US dollar as a unit of account. The Shanghai stock exchange began trading oil futures in RMB. And this is just the beginning. It is possible that soon Turkey will try to switch to the use of the national currency in international transactions - if there is an obstacle to this, then it lies in the instability of the Turkish lira.
Russian Foreign Minister Sergei Lavrov recently said that the dominance of the dollar as a global reserve currency will soon come to an end. Meanwhile, back in the middle of the twentieth century, it was proved that the conversion of any national currency into an international reserve currency entails a deficit in current operations. That is, from such a situation problems arise for the owners of the "printing press" themselves.
Dollars flow out of the country, as they are attracted by other states as a reserve currency and are deposited in the accounts of foreign national banks. It is likely that Trump himself, well aware of the negative consequences of the trade deficit, is trying to somewhat weaken the position of the dollar as the world reserve currency - after all, this is a matter of developing the American economy, which today has serious competitors.
Now the United States, using the dollar, is trying to put more pressure on other countries and large corporations, promising problems to everyone who does not support the anti-Iranian, anti-Russian and anti-Turkish sanctions introduced by Washington. Say, now America is threatening all those global market players who continue to trade with Tehran, the possible freezing of their dollar accounts.
This measure is at first glance effective, but in reality it can lead to big problems just for the United States itself. After all, the use of the dollar as an instrument of political games only weakens its position and the credibility of world business on it. You never know what sanctions Washington will decide in the near future. Therefore, in the future, both states and corporations will prefer not to take risks and begin to experiment with transactions in other currencies - less problematic.
However, for the time being, even the euro, not to mention the yuan, is out of the question about genuine competition to the dollar. So if China and Russia will be able to undermine the power of the American currency, pushing the dollar to a secondary position, then this will not happen so soon.
Information