Publish dateTuesday 28 March 2023 - 13:15
Story Code : 267516
Russia and China end the dominance of the dollar
Farid Zakaria, a famous analyst of international relations, says: China and Russia are planning to attack the supremacy of the dollar as the weight of the global financial system.
Afghan Voice Agency (AVA): Farid Zakaria, a famous analyst of international relations and anchor of the CNN television network, said: "The second economy (China) and the largest gas exporter in the world (Russia) are planning to dominate the dollar. Hit the title of the weight of the global financial system.
According to him, in the power structure, Washington increases the pressure through sanctions on its geopolitical rivals and uses the US dollar as a tool to strengthen its political agenda.
He added: "The dollar is the last very powerful tool in the hands of the United States, which provides unparalleled economic and political power to Washington and provides the possibility of unilateral sanctions on countries and their isolation from a huge part of the world economy."
According to this international analyst: Washington can spend recklessly and be sure that its debts are on the shoulders of other countries. The war in Ukraine and the confrontation between America and China have created a storm that China and Russia can distance themselves from the dollar.
On the other hand, Iran, China, Russia and Turkey and several other countries are taking special measures to end and counter the dominance of the US dollar. Among these actions is the publication of Chinese Union Pay cards, which have been used in more than 120 countries. In addition, Russia's Mir cards will replace the SWIFT system along with the Financial Message Transfer System (STFS), and China's digital Yuan has risen to open competition against the dollar.
The Financial Times newspaper wrote in a report: Europeans, having learned from the Iran sanctions, are developing a plan to reduce the dependence of their region's economy on the dollar and strengthen the global position of the Euro. Among these measures is the increase of exchanges with digital currencies and the national currency of the trading countries, while in some cases barter transactions have also been successful.
At the same time, the American trade account deficit continues to increase, and this issue increases the pressure on the dollar. The budget deficit situation of the United States government causes tensions in the appointment of the president of the Central Bank of America, the inflation rate remains high and there is little hope of its reduction in the short term, and the increase in tensions between Beijing and Washington are among the reasons that put pressure on the dollar in the foreign exchange market. has done. Balancing the labor market and the money market as well as the expected inflation has been one of the most difficult tasks of the central bank.
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