Russian State Duma Speaker explains why dollar is losing its positions more and more

Chairman of the State Duma and member of the Security Council of Russia Vyacheslav Volodin in his Telegram channel named the reasons due to which the dollar as the world reserve currency is gradually losing its positions.

Source: spletnik.ru

According to Volodin, at the moment the dollar is not backed by real goods and resources. So, after the US withdrew from the Bretton Woods agreement, the dollar ceased to be backed by a gold reserve. The Chairman of the State Duma noted that the American printing press has not been restrained for a long time, hence the huge US national debt and record inflation named after President Joe Biden.

“The dollar is used as an instrument of political struggle. Illegal sanctions: restrictions on making payments, theft of gold and foreign exchange reserves – all this does not add confidence to other states that their money will be safe”, Volodin wrote.

According to him, geopolitical changes also affect the position of the dollar, since the unipolar model of the world order has obviously outlived itself.

“There is a demand for multipolarity in the world. As a result – an alternative to the dollar. The proof of this is the growing mutual settlements in national currencies,” the politician said.

He cited Washington’s unwillingness to admit its own mistakes and work on them as one of the reasons for this.

“There is a pattern: each world currency has its own period – about 100 years. The Portuguese real was replaced by the Spanish. Then the Dutch guilder, the French franc, the British pound and the US dollar consistently dominated. The latter will also be replaced by a new one. Today we can say that this is most likely not the euro (which is losing more and more), but the currencies of states with sovereign economies. <…> How fast is an open question, but it is obvious that the process of de-dollarization around the world has been launched and cannot be stopped,” he concluded.

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