2 ms·
One reason might be because this gives the US too much influence over the world (I know I am oversimplifying here). As long as everybody got along well, and mos
by lifty 9y ago
One reason might be because this gives the US too much influence over the world (I know I am oversimplifying here). As long as everybody got along well, and most of the countries in the world were growing economically, the dollar served a common goal. But now we are increasingly heading towards a world where trade wars are common and policy makers are looking inwards rather than outwards. Perhaps all the armed conflicts that US has gotten into also lead to more ideological misalignment in the world.
So, in such a world, I wouldn’t find it so surprising that certain countries would like to wean themselves of the dollar. Of course, this it is more important for powerful geo-political actors like China and Russia, than Somalia (uses USD extensively), and as an example you can look at how China is planning on offering a yuan priced oil contract that is backed by gold.