The World Currency System Changes Forever After This, And The U.S Is Terrified

The World Currency System Changes Forever After This, And The U.S Is Terrified #world #economy #crisis In a world riddled with rising geopolitical tensions, a critical and contentious debate has taken center stage – the future of currencies in the international monetary system. As we delve into the complexities of this global financial landscape, we find ourselves at the heart of a revolution that seeks to challenge the longstanding dominance of the US Dollar. In July 2023, at the summit of the Shanghai Cooperation Organization, two major players, Russia and China, stood united in their call for a multipolar global currency system. Their declaration is just one of many recent efforts by emerging market countries, led by China, to distance themselves from the Dollar as the world’s reserve currency. But why this push for change? If You Like This Video; Like, Share, Comment And Subscribe. This Means A Lot To Us! Thanks For Watching Our Video; The World Currency System Changes Forever After This, And The U.S Is Terrified So, did you know that since World War II, the US Dollar has been ruling the global currency scene? Back then, after the war, the United States and the USD dominated the world economy and currency markets. Now, things have changed a bit. The US economy’s share started to decline, but the USD’s role in transactions and as a reserve currency remained strong. Some folks even call it the ’exorbitant privilege’ because of its special status. That even led some European countries to ditch their currencies and adopt the Euro in 1999. But hold on, the USD faced some tough times too. In 2008, there was a major financial crisis that hit the US and spread globally, tarnishing its image a bit. And just when people thought the Euro might take over, the Eurozone faced its crisis in 2010. The tables turned, and the USD regained its dominance, with a 65% share, while the Euro slipped to 19%. Despite the ups and downs, the US dollar’s relevance has slightly declined over the years, but it’s still holding strong as the global reserve currency. It’s not easy to challenge its position, that’s for sure! But recently, the dollar isn’t doing pretty good. And there are a bunch of reasons why the US Dollar isn’t as hot as it used to be. For starters, trading in other currencies has become way easier and cheaper lately. Those non-traditional currencies are getting more popular, so countries can now dodge the dollar if they want. Also, central banks got a bit bored with the dollar during times of zero interest rates. They were looking for safer options to grow their assets. And oh boy, the US public debt has been piling up like crazy over the years. Budget disputes about the debt ceiling haven’t exactly helped boost investors’ confidence in the stability of the US government. Plus, the US isn’t dominating global trade like it did back in the day. China swooped in and took the lead in trading with a whopping 128 countries. That kinda put the dollar’s status as the global reserve currency in a bit of a pickle. Speaking of China, experts are claiming that they have the economy to lead the de-dollarization these days and nations are starting to use the Chinese Yuan. So, there’s this big wave of de-dollarization happening worldwide, and guess what. Bolivia’s hopped on board too. They’re the third South American country to start using Chinese yuan for their trade stuff. According to reports, Bolivia’s already using the yuan for deals, like exporting bananas, zinc, and wood, and importing vehicles and capital goods. They’ve done financial operations worth a whopping 278 million Chinese yuan. That is around $38.7 million from May to July. That’s like 10% of their foreign trade during that time. But hold on, they’re not alone in this game. Argentina and Brazil have already kicked off using yuan in their trading settlements. Argentina’s even jazzed up its banking system with yuan accounts. And it’s not just these countries - more and more nations are getting into the Chinese yuan action for trade. China’s becoming this mega trading country, which means there’s gonna be a huge demand for yuan settlement. Plus, China’s all about opening up its financial stuff and keeping its yuan’s exchange rates stable compared to other major currencies. Why all this fuss, you ask? Well, some folks are realizing the importance of having a more diverse international money system. Especially since the US has been using the dollar for other purposes. On the other hand, some experts think those aggressive interest rate hikes by the US Fed are putting pressure on developing countries. Capital outflows, currency depreciation, it’s been rough for them. More Details In The Video