Alfredo jalife-rahme
The “soft dedollarization”https://bit.ly/3sJURTF)” is going from strength to strength with the commercial boom in transactions of important local currencies that avoid the dollar (https://bit.ly/3Za57Ro).
In contrast, “dedollarization” hard (https://bit.ly/44KSIEL)” does not look simple at all when the US controls the entire global financial mechanism (https://bit.ly/3OQopqf).
The very influential Council on Foreign Relations (CFR) explains The reason the dollar is the global reserve currency
which allows the US “to borrow money more easily and impose painful financial sanctions (https://on.cfr.org/45KirhI)”.
Tory Segal define a la reserve currency
as “a currency held in large quantities by governments and other institutions as part of their foreign exchange reserves. They usually become an international pricing mechanism for commodities traded on the global market such as oil, natural gas, gold and silver, forcing other countries to maintain this currency to pay for such goods. Currently the US dollar is the primary reserve currency in the world, held by US banks and other countries. Behind the dollar comes the euro as the second most common reserve currency (https://bit.ly/3sOjsHa)”.
Supreme paradox!: China holds by far the largest foreign exchange reserves (without gold) until 2022: US $3.2 trillion, compared to a meager US $232.7 billion for the US (7.25 percent!).
CFR expert Zongyuan Zoe Liu says: China has no intention or ability to dethrone the dollar
.
At the Autonomous University of Chapingo I argued that SWIFT subsumes the omnipotence of the dollar as reserve currency
due to its multitude of transactions with its multiple octopus financial arms ( ; y https://bit.ly/45LRWsi).
According to the Wells Fargo Investment Institute, the dollar does not have a significant risk
of losing its status as the world’s reserve currency, despite the challenges from China since “only the dollar meets all the requirements to be the key global currency (https://on.mktw.net/3Lj0yP4)”.
Wells Fargo is the fourth US bank with assets of US$1.69 trillion, behind third place Citigroup (which has suffered from chronic problems for two decades) with US$1.72 trillion; second place Bank of America with US$2.52 billion; and first place JP Morgan Chase with US$3.27 billion (https://bit.ly/3ZbfwMC).
We still have not forgotten the macabre merger of Wells Fargo with Wachovia trapped in its succulent money laundering in Mexico (https://bit.ly/3sOFxFH).
According to Wells Fargo, “the dollar’s deeply rooted advantages – including the rule of law, transparency and a highly liquid financial market – make a global shift away from the dollar extremely difficult.”
The Chinese yuan still represents 0.01% (mega sic!): consistently a small part of global foreign exchange reserves
although is often cited as the primary threat
However, Beijing occupies second place in the world economy (note: when measuring nominal GDP), according to Wells Fargo.
Wells Fargo has the luxury of displaying a graph where the financial supremacist dominance of the dollar is overwhelming and where the euro comes very far in second place, which “has a deep and regional financial market with several of the other prerequisites for an international currency (https://bit.ly/3Z8y0gR)”.
The dollar is consubstantial with the “plumbing ( sic) of global finance” by involving 90 percent (mega- sic!) of more than US$7.5 billion from daily foreign currency exchanges (FOREX).
The most striking thing about the omnipresent supremacy of the dollar is that the “de-dollarization” hard” is still very far away, despite the fact that China has the largest foreign exchange reserves (curiously in dollars) and is already the second global economy behind the US in nominal GDP – although in its purchasing power it has displaced the US to second place.
The Conference
