Signs of De-Dollarization Seen in World’s Biggest Economies
TEHRAN (Tasnim) – There are signs showing that the world’s major economies are increasingly moving away from dollar transactions.
De-dollarization is increasingly making headlines and you don’t have to look too hard to find examples, RT reported.
New sources of non-dollar finance are emerging. There are new bilateral agreements to trade and lend in currencies other than the US dollar.
Even more importantly, major oil trade buyers and sellers – Moscow and Riyadh as much as Beijing and New Delhi – are agreeing to trade it in non-dollar currencies.
These deals are destroying one of the main pillars of dollar dominance since OPEC quadrupled and then doubled oil prices in the 1970s, giving countries around the world a major reason to demand and hold dollars.
Unlike in the past, neither the US financial system nor the productive sector of the economy of this country can play a key role in maintaining its financial dominance in the global market.
Needless to say, claims about the attractions of US finance were exaggerated. As far as most of the world was concerned, rather than providing beneficial productive investment, the US dollar-denominated financial system only unleashed torrents of short-term ‘hot’ money that has only profited mostly Western speculative investors, while regularly wreaking havoc on the rest of the world’s economies, the report added.