1/2 Looks like it, and the downward trajectory doesn’t seem to be abating, yet some use spin to avoid discussing it:
The numbers: the dollar share of global reserves was 73 percent in 2001, 55 percent in 2021, and 47 percent in 2022. The key takeaway is that last year, the dollar share slid 10 times faster than the average in the past two decades.
De-dollarization kicks into high gear
By Pepe Escobar (Posted Apr 29, 2023)
“... the U.S. dollar’s status as a global reserve currency is eroding. When corporate western media begins to attack the multipolar world’s de-dollarization narrative in earnest, you know the panic in Washington has fully set in.
The numbers: the dollar share of global reserves was 73 percent in 2001, 55 percent in 2021, and 47 percent in 2022. The key takeaway is that last year, the dollar share slid 10 times faster than the average in the past two decades.
Now it is no longer far-fetched to project a global dollar share of only 30 percent by the end of 2024, coinciding with the next U.S. presidential election.
The defining moment—the actual trigger leading to the Fall of the Hegemon—was in February 2022, when over $300 billion in Russian foreign reserves were “frozen” by the collective west, and every other country on the planet began fearing for their own dollar stores abroad. There was some comic relief in this absurd move, though: the EU “can’t find” most of it.
Now cue to some current essential developments on the trading front.
Over 70 percent of trade deals between Russia and China now use either the ruble or the yuan, according to Russian Finance Minister Anton Siluanov.
Russia and India are trading oil in rupees. Less than four weeks ago, Banco Bocom BBM became the first Latin American bank to sign up as a direct participant of the Cross-Border Interbank Payment System (CIPS), which is the Chinese alternative to the western-led financial messaging system, SWIFT.
China’s CNOOC and France’s Total signed their first LNG trade in yuan via the Shanghai Petroleum and Natural Gas Exchange.
The deal between Russia and Bangladesh for the construction of the Rooppur nuclear plant will also bypass the U.S. dollar. The first $300 million payment will be in yuan, but Russia will try to switch the next ones to rubles. ...”
https://mronline.org/2023/04/29/de-dollarization-kicks-into-high-gear/
2/2 *Nasdaq*
Petrodollar Dusk, Petroyuan Dawn: What Investors Need To Know
4/2/23
“During a three-day state visit, Chinese President Xi Jinping held friendly talks with Russian President Vladimir Putin in a show of unity, as both countries increasingly seek to position themselves as leaders of what they call a “multipolar world order,” one that challenges U.S.-centric alliances and agreements.
Among those agreements is the petrodollar, which has been in place for over 50 years.
In case you’re wondering, “petrodollars” are not a real currency. They’re simply dollars being used to trade oil. Early in the 1970s, the U.S. government provided economic aid to Saudi Arabia, its chief oil-producing rival, in exchange for assurances that Riyadh would price its crude exports exclusively in the U.S. dollar. In 1975, other members of the Organization of Petroleum Exporting Countries (OPEC) followed suit, and the petrodollar was born.
This had the immediate effect of strengthening the U.S. dollar. Since countries around the world had to have dollars on hand in order to buy oil (and other key commodities such as gold, also priced in dollars), the greenback became the world’s reserve currency, a status formerly enjoyed by the British pound, French franc and Dutch guilder.
All things must come to an end, however. We may be witnessing the end of the petrodollar as more and more countries, including China and Russia, are agreeing to make settlements in currencies other than the U.S. dollar. ...”
https://www.nasdaq.com/articles/petrodollar-dusk-petroyuan-dawn:-what-investors-need-to-know
Thank you for explaining all that history. I appreciate it, very much.
Thank you. As I posted, the snarky posters who dismiss the dollar being replaced by some other currency are ignoring the fact that the world does not need a reserve currency at all.
This all started pre-computers and made trade easier.
Many world banks are buying up gold to back their currencies and they will simply trade with each other in their own currencies....or whichever one they agree upon.
Regardless, the day the dollar stops being the world’s reserve currency (this will happen over the course of a few years) the dollar will collapse in value.