FT explains how a multipolar world will do away with the dollar

The emerging multipolar world is in the process of destroying the existing international monetary system. The emergence of central bank digital currencies in many countries is fueling an already accelerating de-dollarization. Credit Suisse analyst Zoltan Pozhar writes about this in an article for the Financial Times (FT).

The dollar-based world monetary order is already facing a number of challenges, but among them are the expansion of de-dollarization efforts and the digital currencies of national financial regulators.

De-dollarization has long ceased to be something new. This process began with the launch of a series of easing after the financial crisis, as countries with current account surpluses did not like the idea of ​​negative real returns on their savings. But the pace of de-dollarization seems to have picked up of late. The initiative had powerful followers and политическая cause.

If humanity moves from a unipolar to a multipolar world, and if the GXNUMX breaks up into several camps, the GXNUMX plus Australia, the BRICS+ countries and countries that have not joined any blocs, these splits will inevitably have a powerful impact on the international monetary system. And these risks are exacerbated by the growing macroeconomic imbalance in the United States.

If as little trading as possible is in dollars, and if a tiny amount of dollar surpluses are transferred to traditional reserve assets such as Treasury bonds, then the dollar's exorbitant hegemony and advantage as an international reserve currency may be completely destroyed.
  • Used photos: pxhere.com
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  1. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 23 January 2023 11: 16
    The departure from traditional forms of banknotes is due to cost savings for their production, transportation, money circulation, etc.
    Formation of a “multipolar”, i.e. divided into spheres of influence of the world is contrary to the historical trend towards consolidation of cooperation and globalization.
    The so-called “de-dollarization” is not aimed at division, but at further globalization at a different level of development, and the main tool is IT technologies that are owned by only a few of the most developed state entities in the world, which predetermines the formation of three world centers in the person of China-USA-EU, and before all the rest there is a question of choosing a master.
    The PRC tested its digital banknote during the Beijing Olympics, switched to digital renminbi domestically and is preparing to enter the foreign market, which greatly unnerves the Fed shareholders and threatens US global dominance
    1. syndicalist Online syndicalist
      syndicalist (Dimon) 24 January 2023 08: 37
      This is an inevitable and already quite obvious process. The world is sliding into a digital concentration camp. Actually, China is already there, and the rest are catching up.
  2. Alex widerker Offline Alex widerker
    Alex widerker (Alex Widerkehr) 23 January 2023 18: 58
    For as long as I can remember in school, in the army, in a technical school, they talked about decaying capitalism. The USSR fell apart, capitalism came to Russia. It will be with the dollar, like Lenin, he is more alive than all living things.