Serious Indicators of Dollar Dominance Coming to an End: Researcher’s Findings

Researcher Mustafa Al-Said confirmed in an interview with RT that there are serious signs of the desire of countries to limit the role of the dollar, “so that the Chinese yuan is a candidate as an alternative currency in a multipolar world.”

Al-Saeed pointed out that the conversation is in the context of a multipolar world and the emergence of an international currency that competes with the dollar, with the Chinese yuan usually being the candidate, based on Chinese production and its growing share in world trade, and given that it is the largest producer, largest investor, largest exporter of commodities and largest trading partner for all countries in the US, Europe, Africa and South America.

In the same context, researcher Al Said mentioned that there are many countries affected by the dominance of the dollar that have either been subjected to direct economic sanctions that have affected their income and the value of their national currency for reasons that do not seem to be understood too much. He added: “How can a national currency lose a third or half of its value in the blink of an eye just because the United States announces that it has placed this country or its sectors on the sanctions list, and why did the dollar turn? from a store of value currency to an economic weapon more deadly than a military weapon? And why did it shrink? American production of goods, and with it the volume of its trade, fell, but the dollar remained the main currency in international trade.

set of interfering factors

He explained that there is a group of interrelated factors that govern world trade, in addition to which there are financial institutions such as central and commercial banks, trading systems, foreign exchange reserves, stock and bond markets, so that some specialists feel dizzy when they cannot understand strings governing world trade and exchange rates.

He said: “But that does not mean that the dollar cannot be removed from its place, and, for example, when a group of people decides to boycott a particular product, we must first find out a few things, the first of which is whether this group of people represents a large percentage of buyers of this product? Are they united or dispersed, and do they have an alternative to this product? Usually the boycott fails because the consumers are disunited or don’t have much market power and they don’t have concrete and suitable alternatives, so the boycott collapses or doesn’t become something of value or power and despair sets in and it obeys the laws of the market. laws that only the strong recognize, and only the strong. Rather, it needs alternative instruments for a complex financial system, just as it needs groups interested in bearing the costs of creating an alternative system that will gain confidence and, thus, thus become influential.

Globalization has destroyed the will of states

Al Said drew attention to the fact that globalization in its current system was a tool to dismantle the will of states, since any country did not depend on what it produced to meet its needs, and countries specialized in specific types of goods. or raw materials, and globalization removed the dependence of any country on satisfying its own needs, and it had to specialize in the production of a number of goods with great benefits, because each country has a comparative advantage in the production of those goods in which it specializes. .

In this aspect, he cited the example of Saudi Arabia, which excels in exporting oil because its climate and water resources do not help it meet the demand for wheat, and if it did, the cost of production would be higher than in the world. price, and thus it will meet the requirements of the world market, but will not be immune from shocks that it cannot avoid: the price of wheat may double, or the price of oil may fall, and it will not even be able to control the prices of its products, nor determine the currency in which it is sold. And he continued: “This disintegration and interdependence, as well as the expansion of international trade, have increased the ability to control the dominant country from influencing the prices of goods of other countries. International trade relies on the dollar as a reference currency, and the system of trade and transfers known as Swift uses the dollar as a trading currency that can prevent other countries from exporting and importing goods, and by virtue of this control, the United States has used its power to establish prices in other countries. products.

He concluded, “Yes, there are strong indications that a system that for the first time is truly threatened by a shift in its dominance has emerged, and for that we find all this turmoil and preparation for battle, as well as the war in Ukraine and Taiwan. the crisis and others are only part of the big battle for the throne of American hegemony and the dollar, which is the pillar of its tent.”

Source: RT

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