Expert: new global financial architecture will be formed regardless of US economic problems
Many parties in the world are tired of the long-term Western hegemony: the sanctions policy, the organisation of barriers to energy supplies, and the destruction of existing logistics routes. The countries of the ‘golden billion’ now face high inflation, a decline in industry and investment, a decrease in the standard of living of their population, and an increase in social tension. In recent times, the US Dollar has experienced a serious blow: an increasing number of countries are switching to bilateral trade in Yuan and national currencies in order to reduce the risks associated with the American currency. The weakening of the US dominant position is definitely leading to the loss of the Dollar's status as the world's reserve currency. Its share in global foreign exchange reserves makes 58 percent at present, and this is much less than two decades years ago, when it was 73 percent. After all, even with a decrease in the Dollar’s share in settlements, this currency is used to determine the value of contracts. Mikhail Kovalev, a doctor of physical and mathematical sciences and professor at the Belarusian State University’s Department of Analytical Economics and Econometrics, commented on the issue.
“There are two obstacles to avoiding the Dollar in settlements: the traditions of international pricing and the volatility of national currencies. The decreasing popularity of the American currency around the globe is dictated by the current political and economic situation and the need to resist the use of it as a lever of pressure and unfair competition. The use of national currencies in global trade means freedom from external pressure, and this trend will gain strength as states strengthen economically. Therefore, many countries are talking about switching to settlements in national currencies, but this process is not going as fast as we would like. It is high time to create a special centre of the BRICS or China’s One Belt, One Road initiative for making payments in national currencies in real time: banks of the member countries should have accounts in this centre and pay in national currencies for goods. I am convinced that, sooner or later, this will be done. Undoubtedly, the new global financial architecture will be formed regardless of the financial and economic problems in the United States,” the economist explained.
