Stabroek News on Nostr: Trump can’t stop de-dollarization ========== Donald Trump pledged during the 2024 ...
Trump can’t stop de-dollarization
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Donald Trump pledged during the 2024 presidential campaign to impose 100% tariffs on countries that reduce reliance on the US dollar; however, this strategy is unlikely to halt the dollar's decline. The dollar's share of foreign-exchange reserves fell from 72% in 2002 to 59% in 2023, with increased demand for currencies like the Chinese renminbi. The global oil trade saw one-fifth of transactions denominated in currencies other than the dollar last year. Global South countries are driving economic growth and promoting local-currency settlement (LCS) for trade. The euro now accounts for about 20% of global reserves. China has established a Cross-Border Interbank Payment System and bilateral swap lines with 40 central banks. The Reserve Bank of India initiated international trade settlement in rupees, potentially saving $30 billion in dollar outflows. BRICS+ countries are increasingly settling trade in national currencies. De-dollarization can mitigate adverse effects of US Federal Reserve policies and reduce the need for reserve hoarding, which costs developing countries over $300 billion annually. Despite the dollar's strong position, the shift towards non-traditional currencies is expected to continue, especially with anticipated US tariffs and sanctions under Trump.
#Dedollarization #UsDollar #Trump #GlobalEconomy #Currency #Brics #China #Euro #Trade #FederalReserve
https://www.stabroeknews.com/2024/12/28/features/project-syndicate/trump-cant-stop-de-dollarization/
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Donald Trump pledged during the 2024 presidential campaign to impose 100% tariffs on countries that reduce reliance on the US dollar; however, this strategy is unlikely to halt the dollar's decline. The dollar's share of foreign-exchange reserves fell from 72% in 2002 to 59% in 2023, with increased demand for currencies like the Chinese renminbi. The global oil trade saw one-fifth of transactions denominated in currencies other than the dollar last year. Global South countries are driving economic growth and promoting local-currency settlement (LCS) for trade. The euro now accounts for about 20% of global reserves. China has established a Cross-Border Interbank Payment System and bilateral swap lines with 40 central banks. The Reserve Bank of India initiated international trade settlement in rupees, potentially saving $30 billion in dollar outflows. BRICS+ countries are increasingly settling trade in national currencies. De-dollarization can mitigate adverse effects of US Federal Reserve policies and reduce the need for reserve hoarding, which costs developing countries over $300 billion annually. Despite the dollar's strong position, the shift towards non-traditional currencies is expected to continue, especially with anticipated US tariffs and sanctions under Trump.
#Dedollarization #UsDollar #Trump #GlobalEconomy #Currency #Brics #China #Euro #Trade #FederalReserve
https://www.stabroeknews.com/2024/12/28/features/project-syndicate/trump-cant-stop-de-dollarization/