Not so long ago, the IMF reported that the share of the dollar in international foreign exchange reserves in 2022 fell to 58.36%
This is the lowest figure in the last 27 years. Back in 2015, it was at 66%. In percentage terms, the dollar reduced its share more than all other currencies. In absolute terms, dollar reserves decreased by 8.7% (to $6.471 trillion). What does it say?
We can say for sure – not about the decline of the American currency, because it is still leading by a huge margin in terms of the share both in international reserves and in trade operations. However, we notice a steady downward trend. And it did not appear in 2022, but has been observed over the past few years.
The events of the past year acted as a powerful catalyst. More than 14,000 sanctions have already been imposed against our country. Now our gold and foreign exchange reserves, stored in the West, are frozen. This is no longer just our personal “showdown” with Europe and the United States, the whole world is watching what is happening.
It is not so difficult to understand what conclusions are drawn in other states. Reliance on the dollar, forced involvement in the global economy played a cruel joke on Russia. The steering wheel of a large “ship” is in the West. Why can’t someone else fall under the hot hand?
Asia is already massively beginning to practice trading in national currencies. The same is observed in Latin America, Africa, the Middle East – in other words, in the entire “non-Western” world. Everyone wants to lay a straw for themselves in case of Western aggression, no one wants to be left without reserves or be unable to pay for goods during foreign trade.
Does this mean that in the coming years the dollar (and the euro) will cease to be the main world currencies? No, because Western financial infrastructure remains the most convenient, transparent and global to this day. This state of affairs will not change quickly. However, the diversification of foreign exchange assets will inevitably gain momentum. At the same time, the economic influence of the West on the rest of the world will decrease.
Sovereign economy
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