The Dollar dominance has been shrinking since 1990 and its share of reserves currencies also dropped from 70% to less than 60% in 20 years. According to the latest reports if US dollar’s global supremacy erodes, America will face its results.
A political commentator Fareed Zakaria while talking to media said that, Reckoning in America has begun already. The media all over the state is talking about the imminent fall of long hegemonic financial world.
This De-dollarisation would have an impact on neo-colonialism of west states and its ruling patterns where dollar has always been weaponised against third country nations. It always have part in global geopolitics.
Downfall of ‘King Dollar’
The west may not accept it but world is witnessing a paradigm shift after nearly eight decades. King Dollar is facing a revolt that could possibly dethrone it from its place. Dollar had an huge impact in global trade from a long time but countries are now moving away from this trend.
The announcement of Dollar’s death may be too early but as West used it financial bomb against Russia, it provided a way for global south to change the regime.
However, the end of hegemony of Dollar does not really mean that new currency will rise and make itself hegemonic. Instead the world is now ready to accept the patterns of multicurrency economic order.
The Yuan alsp received a big boost after it is embraced by Russia, it appears as the emerging currency and global companies are increasingly adopting Yuan for bilateral trade with China and in multilateral trade also.
After the increase demand of Yuan in Trade market the trade of China is also marked to cross $200 billion by the end of 2023. Yuan also replaced Dollar in many countries as the most traded currency.
The super power of Dollar also affected the developing nations in huge ways and they witnessed cost of living rise, debt servicing, and poverty deepen. However, payment in local currencies is the only solution to this problem.
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De-dollarization will not happen over-night, it will take time but current drive of global trade in different currencies shows that soon there will be no concept as Dollar Hegemony or King Dollar.
Countries Dumping King Dollar
Countries dumping the Dollar and it is surprising that soon there will be no concept of Dollar hegemony in the world. In recent years, China, Russia and Brazil are the main countries which worked to change the path and concept of dollar over every currency.
Earlier in January, Iran and Russia also announced that they will start the trade at foreign level in new currency other than dollar. US Dollar has held a prominent place from a long time in global market but this sudden shift is now having impact on dollar affect.
Considering the geopolitical, economic and strategic conditions, countries are now following different paths, Russia, China, Brazil and Iran started the path and it says that soon it will change the whole scenario.