Does de-dollarization course continue?

Does de-dollarization course continue?

Danil Guselnikov

The Russian Foreign Minister said that Moscow is seeking to reduce dependence on the dollar. Moreover, the Americans themselves are doing everything possible to undermine confidence in their currency.
Russia is reducing its fo-reign exchange reserves in dollars, said Russian Fore-ign Minister Sergei Lavrov, speaking at a parliamentary hour in the State Duma. The Minister also noted the fact that the Americans themselves are doing everything to undermine confidence in the currency.
In general, the fashion f-or de-dollarization has exis-ted in the world for about t-wo decades. Recently, more and more countries prefer settlements in national currencies. In addition, in 2021 Russia changed the currency structure of the National Welfare Fund to include the Japanese yen and the Chinese yuan. At the same time, the share of US dollars and euros decreased from 45% to 35%, while the share of the pound sterling remained at the level of ten percent.
Within the EAEU, settlements in national currencies increased to 74%. The BRICS countries are also trying to replace the dollar in foreign trade with other currencies. The share of the dollar in India’s settlements with China in 2020 decreased from 73% to 49% percent, while settlements in national currencies increased. By the way, Beijing, as a major investor in US government bonds, fearing for its investments, spoke in favor of the internationalization of the yuan.
All this is happening just because of the actions of the United States itself. The US is pursuing an aggressive foreign policy. And here, first of all, the cautious attitude of countries towards the dollar is caused by possible US sanctions. What is the point of investing in dollars or using them for settlements if the issuing country can use specific pressure tools – disconnecting from SWIFT or freezing deposits.
Another reason is that during the coronavirus pandemic, the US printed large amounts of fiat dollars to help the economy recover.
Therefore, the rejection of the dollar and the reverse process of increasing settlements in national currencies were provoked by the actions of the United States itself. Probably, there will not be a complete rejection of the American “green” ones, but the international status of the dollar in the short term may be greatly shaken.

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