HOOK. The U.S. dollar has been the world’s reserve currency for decades, but countries are moving away as China and Russia make moves for others to dump the dollar.
A battle against the dollar is Raging across the world right now. In South America, Europe, the Pacific, Asia and Africa countries are being pressured to dump the dollar 4 Russian and Chinese backed assets.
Daily caller writes. Due to Western sanctions against Russia for its invasion of Ukraine, India has increased its imports of Russian coal and natural gas, paying in Chinese yuan, United Arab Emirates dirham, Hong Kong dollar, and euro.
The Turkish and Iranian economies have also forged bilateral agreements with Russia to use the Russian ruble for bilateral trade as a way to reduce their dependence on the QUOTE “toxic” US dollar while easing the effects of sanctions on the Russian economy.
BRIDGE. China has made some drastic moves in its goal to get the dollar out of world markets.
National interest states. China is the biggest concern, because it’s developing a digital yuan. With an electronic currency free from American oversight, China’s Belt and Road Initiative can expand unhindered because Washington won’t be able to track transactions between Beijing and developing countries. China will force foreign countries to use an untraceable, hyper-centralized currency to finance infrastructure projects in Latin America, Africa, and the Middle East. Since the dollar is printed in a transparent and democratic country, information about its value and circulation is easier to get with the dollar.
The United States is not out of the fight when it comes to keeping the dollar as the world’s reserve currency. It takes a leader with strong willpower, and a good economic team to get out there and push the message, and reinforce our economic and trade partners confidence in the dollar. We just hope that the current administration has the drive and willpower to get this done.
