Loading ...This article from ZH sheds a little more light on the subject of “dedollarization.”
I Told You So
The Russian economy is predicted to grow this year, despite all the sanctions. Russian oil exports, for example, are higher than ever.
Russia’s also buying high-tech goods from China, including some military hardware and other manufactured goods. China’s buying Russian oil and natural gas, in addition to agricultural output and weapons.
That’s a big two-way trade, and the dollar isn’t being used. Russia’s paying yuan, and China’s paying rubles.
Meanwhile, nations around the world are trying to eliminate or reduce their dependence on the dollar out of fear that the U.S. could use Russia-style sanctions against them if the U.S. disapproves of their conduct.
None of the sanctions would be effective or even possible without the use of the dollar and the dollar payments system.
Not Even Janet Yellen Can Deny It
The failure of U.S. dollar-based sanctions has become too obvious to ignore. The failure is so obvious that even Janet Yellen has admitted that sanctions are not working.
She said, “There is a risk when we use financial sanctions that are linked to the role of the dollar that over time it could undermine the hegemony of the dollar. Of course, it does create a desire on the part of China, of Russia, of Iran to find an alternative.”