Agreed. The key point is that USD$ is used for international trade even where neither trade party is the USA.
The other aspect is holding USD$ as a ‘safe haven’. That purpose could decline if US Treasuries become unattractive; but even then where would the party place its money? Gold has increased greatly as a sovereign reserve asset, but could not absorb the amount in UST. Crypto is too new and too volatile.
No-one in her right mind would hold Renimbi as a long term asset. Euros€ carry the risk of being a multi-country asset, with memory of Greece & Cyprus.
Is there truth in the rumour that China and Saudi Arabia are working on a trading platform that replaces the dollar for the pricing and trading of oil? If this happened it would a major knock to the dollar and US power, which is likely to decline further with the rise of the BRICS/neither US nor China movement as well as the next president regardless of who it is....
I never heard of that and even if it was true, a trading platform requires people to accept and use it. And while the Chinese might use it and the Saudis may want to sell some of their oil via the platform, it will not be used by anyone else.
Agreed. The key point is that USD$ is used for international trade even where neither trade party is the USA.
The other aspect is holding USD$ as a ‘safe haven’. That purpose could decline if US Treasuries become unattractive; but even then where would the party place its money? Gold has increased greatly as a sovereign reserve asset, but could not absorb the amount in UST. Crypto is too new and too volatile.
No-one in her right mind would hold Renimbi as a long term asset. Euros€ carry the risk of being a multi-country asset, with memory of Greece & Cyprus.
Is there truth in the rumour that China and Saudi Arabia are working on a trading platform that replaces the dollar for the pricing and trading of oil? If this happened it would a major knock to the dollar and US power, which is likely to decline further with the rise of the BRICS/neither US nor China movement as well as the next president regardless of who it is....
I never heard of that and even if it was true, a trading platform requires people to accept and use it. And while the Chinese might use it and the Saudis may want to sell some of their oil via the platform, it will not be used by anyone else.
Nothing imminent:
https://www.atlanticcouncil.org/blogs/econographics/is-the-end-of-the-petrodollar-near/