Sunday, April 29, 2018

Wall Street Journal - Iran, China Seek to Loosen Dollar's Grip on Global Markets

This Wall Street Journal article says what we have been reporting here from some time. Despite ongoing efforts by a number of nations to dethrone the US dollar globally, it remains the global reserve currency with no signs that will change soon at this time. Below are a couple of excerpts.

"A small but growing number of countries are stepping up efforts to wean themselves off the dollar, aiming to chip away at the U.S. currency’s decadeslong dominance.

Iran last week became the latest when it pledged to replace the dollar with the euro in its foreign-currency accounting.

China introduced the world’s first yuan-denominated oil contracts last month, part of a continuing effort to raise its currency’s global profile, while Venezuela launched a bitcoin-like cryptocurrency earlier this year. Russia has ramped up its gold reserves to diversify away from the dollar. Still, none of these new efforts has threatened the dollar’s global role."

. . . .

"China’s efforts to use the yuan to create an oil benchmark that would rival those in New York and London “look to be a nonstarter,” the Council on Foreign Relations said in a report. In February, the yuan made up just 1.6% of domestic and international payments, according to financial-transactions firm Swift. As a share of currency reserves, the yuan represents 1.2%."

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