/View.info/ In recent times, Internet searches for the term “dedollarization” have been increasing. Countries on five continents are now looking for other ways to diversify currencies in their international trade. The attitude of the countries towards the US dollar is no longer so enthusiastic and we are witnessing more and more practical actions in the direction of “de-dollarization”.
The main reason for this is the current position of the US in international trade. The so-called “dollar hegemony” is mainly reflected in the extremely high rate of use of the US dollar in international trade. Looking back to 2000, the United States accounted for 12.1% of global merchandise exports and was the largest trading partner of most developing countries. Two decades later, however, this figure has fallen to 8.1%, and the share of goods exported by developing countries has risen to 45.9% of the global total.
This is the objective result of the development of world market competition. The declining status of the United States in international trade means that the US dollar is no longer the only option for other countries. However, the United States has not only failed to adapt to the trend of global development, but is “acting against the trend” by practicing trade protectionism and promoting the wave of “anti-globalization”.
The statistics showed that since former US President Donald Trump started a trade war in 2017, the share of world reserves in US dollars has rapidly started to decline. Protectionism only brought other countries closer to reducing their use of the dollar. Not only that, but the share of US dollar bonds held by foreign investors also continues to decline, indicating the rest of the world’s declining confidence in the US currency.
Even US Treasury Secretary Janet Yellen admitted in her speech on April 20 that economic sanctions against foreign countries threaten the dominance of the US dollar. Yellen also added that the world is big enough to accommodate both the United States and China.
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