Although the US government may not like the idea, their US Dollar is not as powerful as it used to be. Entire countries are trying to get rid of their dependency on this currency. China, Russia, and even India are just some of the examples. Bilateral trading agreements are being forged as a way to bypass the USD altogether. This can mean big things for the Euro in terms of being the reserve asset of the world. It is evident there is no longer a need for the US Dollar like there was a decade or two ago.
Contrary to what the public thinks, the US Dollar is not necessarily the world’s reserve currency anymore. A lot of things are still denominated in USD, granted. However, the areas and regions that matter are moving away from this currency. Eurasia, in particular, has no love lost for the greenback right now. Instead, regions are flocking to the Euro when it comes to international exchanges. Some people are even talking about the “de-dollarization”, which is a rather interesting term.
US Dollar is in a Very Weak Position
It is evident China and Russia are making big strides in this regard. Both countries are working on alternatives to denounce the US Dollar altogether. This will have major effects on the global financial sector. This move has been brewing for a very long time, though. Thanks to developments such as CIPs and potentially gold-backed currencies, the US Dollar has lost its role. In fact, it may become a pretty useless currency on an international level pretty quickly.
Some people may claim there are no viable alternatives for the greenback. That would be completely wrong, unfortunately. The US has been selling off gold reserves for no apparent reason. China and Russia have been increasing their stocks accordingly. Moreover, those two countries have the backing of most BRICS countries as well. Once the new financial alternative to the US Dollar is created, things will change pretty quickly.
The main question is when this shift will take place. It all depends on whom you ask the question to. China and Russia are biding their time, but working hard on an alternative. The US is doing nothing to stop it because there is nothing they can do. Take new forms of money such as Bitcoin into account, and the US Dollar can become third-string. A lot of things will change in the financial sector sooner or later.
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