During the last ten years the US Dollar has lost almost a third of its value which is sparking a demise of the US Dollar as a worldwide currency. Over 60 percent current foreign currency reserves worldwide are in U.S. dollars. However, quietly in the background, some of the worlds largest economies have made agreements with each other to move away from using the U.S. dollar in international trade.
The demise of the US dollar begins with some oil producing nations that have sold oil in currencies other than the U.S. dollar. This constitutes a huge threat to the petrodollar system of the last 40 years.
China Major Player In demise Of The US Dollar
The Chinese economy is likely to become the number one economy on the planet, due in part to being the words 2nd largest economy.
China has been teaming up with other emerging powers including Russia for international trade agreements. Russia and China now have a Currency Agreement whereby they use their own national currencies when trading with each other.
Meanwhile the third largest economy, Japan, created a deal with China to promote the use of their own currencies when trading with each other. Right now over 70,000 Chinese companies are using their own currency in cross-border transactions.
The demise of the US Dollar will be further exacerbated by the BRICS (Brazil, Russia, India, China, South Africa) agreements who also plan to do a similar thing to the Russian/ Chinese agreement. And, now Africa is getting in on the act with China currency trading. Africa became China’s biggest trading partner back in 2009 and is aggressively seeking to expand the use of Chinese currency.
The United Arab Emirates have joined China to ditch the U.S. dollar and use their own currencies in oil transactions with each other.This agreement has led to a 39 percent increase in one year for oil transactions. Saudi Arabia in particular teamed built a massive new oil refinery and leaders from China and Saudi have been working to on expanding trade between them.
Other Worldwide Movements
Iran, is one of the most aggressive nations when it comes to the demise of the U.S. dollar in international trade. Recently reported is that India will began using gold to buy oil from Iran.
Even the United Nations favours a new World Reserve Currency. There have been many reports calling for an alternative to the U.S. dollar as the reserve world currency. They would like to see “a new global reserve system” where the U.S. is no longer a dominant feature.
Likewise, the International Monetary Fund published is seeking a new world currency called “Bancor” along with a new global bank to go with it. When all is said and done worldwide shifting of trading agreements can only move the balance of power, making the strongest case yet for the demise of the US Dollar.