UNITED STATES (OBSERVATORY) – The US dollar as a reserve currency may soon lose its status. To this end, there are already quite a few reasons. And although this process is not fast, it is very likely that the world is coming to this.
The day before it appeared a message that the Iranian government had decided to abandon international payments in dollars and switch to euros in foreign transactions and official records of state institutions.
European lenders have already offered to provide the necessary credit lines.
It would seem that this is the case, because Iran occupies a small place in the world economy. That’s right, but what hinders other countries, especially those under US pressure, is to do the same and stop calculating in dollars. Theoretically, this is quite possible, in practice, too.
Let’s recall the same “RusAl”, which the States imposed sanctions. There were rumors that the company asked counterparties to make payments in euros.
Again, other countries can resort to this step over time. In addition, many of them are already calculating in their currencies, and this is no secret.
And, of course, we can not fail to mention China, which this year launched futures for oil in yuan. The Chinese never do anything for nothing, for a tick. They perfectly understand that they are the world’s largest buyer of oil and can dictate their terms to suppliers.
These conditions are quite simple: calculations for oil are conducted in Chinese currency. So far this has not happened, but this is most likely the matter of the near future.
The pilot program, according to Reuters, will begin already in the second half of this year, but for now the regulators have asked some financial organizations to prepare for pricing of oil imports in Chinese currency.
According to the proposed plan, Beijing will start with purchases from Russia and Angola – two countries that, like China, are trying to break the global dominance of the dollar. By the way, they are also the two largest suppliers of crude oil to China along with Saudi Arabia.
It is obvious that the transfer of imported oil supplies to China to the yuan is already a colossal blow to the dollar, as for many years all such deliveries were made in the American currency, which is why it is called petrodollar.
Meanwhile, we see how the demand for US debt securities is gradually falling. The volumes of borrowing and the budget deficit grew at Trampe so much that one does not want to buy these bonds. In addition, they this year constantly lose in price, becoming even less attractive.
Not just because Americans are running around the world and trying to spoil the situation. They understand that they have lost their former economic power, and other problems are very acute.
The only way out is to destabilize the situation where possible, by any means to free markets for their companies that have lost their place in conditions of fair competition. Previously, similar situations in the world ended in wars, now almost the same, only these wars have a different character: at this stage, there are “trade wars”. By the way, the story with “RusAl” also refers to “trade wars”.
First, the US introduces duties on aluminum, and then in fact kills one of the largest players in the market, whose main supplies go to Europe.
There is not even any disguise. This is a trivial achievement of their goals, bypassing any rules.