Washington: The world’s most powerful nation’s club which includes Russia, China and the European countries are walking away from the US dollar thereby threatening its status as the global reserve currency, claims US-based analyst Anne Korin. Korin believes that the Petro-Yuan, that have taken shape in the last few years were an early warning system, indicating the end of the US dollar’s dominance.
Anne Korin is co-director of the think tank, the Institute for the Analysis of Global Security (IAGS), as also a senior adviser to the United States Energy Security Council. Only a few months ago, her book named ‘De-dollarization: The revolt against the dollar and the rise of a new financial world order’, was published. The book examines various aspects related to the US dollar, such as challenges faced by it in the past decade and fluctuations occurring in the positions of the currencies across the world.
In an interview with a news channel, Korin asserted the process ending the US dollar supremacy had already begun, and the warned that the leading world powers were eager to accelerate it. ‘We can’t apprehend what will happen next, but the current state will not last forever. The club of nations that do not want the dollar is growing, and it includes the world’s most powerful nations,’ Korin said.
At the time, Korin highlighted the US’ unilateral decision of stepping out of the Iran Nuclear Deal. The US analyst explained that ‘Europe wants to do business with Iran. It doesn’t want to be subject to US law for doing business with Iran. Nobody wants to be picked up at an airport for doing business with countries that the US isn’t happy that they’re doing business with. That is why the European nations are increasingly inclined towards avoiding the use of the US dollar in trade.’
While speaking on the Petro-Yuan, which is a result of the deepening Russia-China ties, Korin claimed that it might turn out to be a critical factor in ousting the US dollar internationally. Albeit, she also stated that the Petro-Yuan by itself was not capable of ending the US dollar dominance and taking its place.
In the past few years, Russia and China have consistently made aggressive moves to ditch the use of the US dollar in trade and transactions. The status China’s Yuan has been rewarded by the International Monetary Fund (IMF) the independent system the country has developed for the primary entities such as gold and oil have initiated the process of cutting down the influence of the dollar. On the other hand, Russia has made its intentions evident by stocking up its gold reserves as also lowering the US dollar shares from its foreign exchange reserves.