Bloomberg: world economy without a dollar can not do

The most effective weapon in the American arsenal against strategic and economic rivals is the American dollar, writes Bloomberg.

The author of the article notes that the President of the Russian Federation Vladimir Putin said that Russia from the dollar will not be completely refused, because this is a universal currency.

The publication notes that Putin’s words sounded after the Russian national welfare fund said that he would translate his dollars in euros, yuan and gold. This is due to the sanctions against Russia, after the adoption of which Russia tries to reduce its dependence on the US currency.

Russia recognizes that modern society without dollars can no longer work. Almost 60% of the reserves of all central banks and 88% of international transactions occur in dollars. And at the initial stage of the pandemic, it is the US Federal Reserve supported the global financial system.

It is hardly possible to consider the superiority of the dollar unshakable, the author of the article marks. The record budget deficit US affects the number of currency. The dollar still occupies the main place in the reserves of central banks, but its share is now minimal over the past 25 years.

Beijing Strategy to strengthen Yuan has not yet given special results, but it is designed for a long time. It is expected that China’s GDP will exceed the US by the end of this year. But the volume of the economy may not be so important, the author notes. In the world, more than half the economies rotate around the dollar, it is more stable there. In Europe, the border between the dollar and the euro moved to the east, but Asia remains dependent before the dollar, and there just a rapid economic growth.