FX.co ★ The Economist: US dollar’s power ebbing away

Rivals of the collective West team up to build their parallel universe. Dodgy regimes create their ideology and economic concepts and interpret geopolitical events through the prism of their official rhetoric. Oddly, negative economic growth is a newly-coined term meant to define moderate economic development. Sanctions and bans actually boost economic progress. The rogue countries declare that the Chinese yuan has already replaced the US dollar as the world’s number one reserve currency. On top of that, alternative experts insist that Western advanced economies lag behind emerging markets and third-world economies.

The renminbi has again come under the spotlight. The Economist, the British weekly periodical, published another article on the end of the US dollar’s global reign. The bottom line is that the yuan has dazzling prospects to become a new main reserve currency. All in all, the US which still remains the top global economy is doomed to failure.

“Every so often an appetite surges for an alternative reserve currency to the dollar—and a market booms in predictions of the greenback’s imminent demise,” the article reads. Notably, some countries are able to evade the well-established system if they wish.

No doubt, the authors took notice of helpful economic sanctions. They pointed out that Russia’s economy did not suffer from the sanctions because 16% of its exports are now settled in yuans. Besides, the journalists underscored the rapid progress of the Chinese alternative to the SWIFT payment system and Beijing’s moves towards mutual trade transactions in the renminbi.

The new technology of digital payments and digital currencies introduced by central banks could simplify money flow around the world without the involvement of the US, the authors conclude.