India - hardly a strategic ally of China - and Malaysia in April announced a new mechanism to conduct bilateral trade in rupees. Yet much of the push is happening without Beijing’s involvement. Read More: China Takes Yuan Global to Repel Increasingly Weaponized Dollar ![]() ![]() To ensure long-term efficacy, sanctions are often better left as a threat and not actually carried out, according to Daniel McDowell, author of Bucking the Buck: US Financial Sanctions and the International Backlash Against the Dollar. For much of the world, it’s been a stark reminder of their own dependency on the dollar, regardless of what they think of the war.Īnd that’s the dilemma Washington officials face: By increasingly relying on the greenback to fight their geopolitical battles, not only do they risk denting the dollar’s preeminent place in world markets, but they could ultimately undermine their ability to exert influence on the global stage. The Biden administration has imposed sanctions, frozen hundreds of billions of dollars of Moscow’s foreign reserves, and, in concert with Western allies, all but ousted the country from the global banking system. Nowhere has that been more evident than in Russia, where the US has brought unprecedented financial pain to bear on Vladimir Putin’s regime in response to the invasion of Ukraine. The greenback, they say, is being weaponized, used to push America’s foreign-policy priorities - and punish those that oppose them. And yet in observing this sudden wave of agreements aimed at sidestepping the dollar, they detect the sort of meaningful action, however small and gradual, that was typically missing in the past.įor many global leaders, their rationales for taking these measures are strikingly similar. Even perennial US ally France is starting to complete transactions in yuan.Ĭurrency experts are leery of sounding like the Cassandras who have, embarrassingly, predicted the dollar’s imminent demise on any number of occasions over the past century. India and Malaysia in April signed an accord to ramp up usage of the rupee in cross-border business. Hedge Funds at War for Top Traders Dangle $120 Million PayoutsĮverything Apple Plans to Show at WWDC: XR Headset, iOS 17 and Moreīrazil and China recently struck a deal to settle trade in their local currencies, seeking to bypass the greenback in the process. Rich Latin Americans Transform Laid-Back Madrid Into a New Miami ![]() (Bloomberg) - All around the world, a backlash is brewing against the hegemony of the US dollar.Īmazon Is in Talks to Offer Free Mobile Service to US Prime MembersĬhina Is Drilling a 10,000-Meter-Deep Hole Into the Earth
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