{"id":20057,"date":"2023-04-20T23:16:23","date_gmt":"2023-04-20T23:16:23","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/dollar-dominance-fading-amid-growing-china-trade-russia-sanctions-risks-ray-dalio-says-economics-bitcoin-news\/"},"modified":"2023-04-20T23:16:23","modified_gmt":"2023-04-20T23:16:23","slug":"dollar-dominance-fading-amid-growing-china-trade-russia-sanctions-risks-ray-dalio-says-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/dollar-dominance-fading-amid-growing-china-trade-russia-sanctions-risks-ray-dalio-says-economics-bitcoin-news\/","title":{"rendered":"Dollar Dominance Fading Amid Growing China Trade, Russia Sanctions Risks, Ray Dalio Says \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Fewer nations are willing to hold the U.S. dollar as America\u2019s share in the global economy becomes smaller while China\u2019s role in international trade expands, billionaire Ray Dalio noted. The founder of the world\u2019s largest hedge fund also said that Western sanctions on Russia have highlighted new risks of keeping dollar assets. <\/strong><\/p>\n

\u2018Dollar Is Debt,\u2019 Central Banks Are Less Inclined to Hold It<\/h2>\n

The importance of the U.S. fiat in international trade is decreasing and as a result the dominance of the dollar is fading, billionaire investor Ray Dalio said in recent interviews on Youtube. He also pointed out that sanctions imposed on Russia over its invasion of Ukraine have exposed new threats for governments keeping assets in the American currency.<\/p>\n

Central banks around the world are less inclined to hold the greenback, the founder of Bridgewater Associates remarked<\/a> on the Julia La Roche Show last week. \u201cDollars are debt. In other words, when one holds a dollar \u2014 a central bank \u2014 they hold a debt asset,\u201d he stated, according to excerpts quoted by the Business Insider on Tuesday.<\/p>\n

Dalio elaborated that previously nations have been willing to expose themselves to such debt so that they can trade globally as the dollar has been widely used in international transactions. However, with China promoting the use of its currency, the yuan, in trade deals with countries like Brazil, Kazakhstan and others, the need for the dollar may decrease in the future.<\/p>\n

At the same time, Western financial restrictions on Moscow have been pushing the Russian economy towards the yuan while Russia also saw $330 billion in currency reserves frozen, further preventing it from transacting in dollars or euros. Dalio believes that the sanctions have increased the perceived risks associated with dollar assets. He concluded:<\/p>\n

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So for those reasons, there\u2019s less desire to hold U.S. dollar-denominated debt, which means yes, less U.S. dollars. So the supply-demand picture is worsening, particularly as we continue to have to sell them internationally to fund the deficit.<\/p>\n<\/blockquote>\n

In an interview<\/a> for Tom Bilyeu\u2019s Youtube channel posted on Saturday, Ray Dalio again highlighted the weaponization of the U.S. dollar as a factor for its diminishing role. \u201cThe United States\u2019 greatest weapon to use, as distinct from military weapon, is sanctions. So, sanctions means you freeze assets, those assets are the bonds. That happened with Russia and there are threats of it with other countries, China and so on,\u201d he explained.<\/p>\n

A number of public figures have recently acknowledged that sanctions policies can hurt the hegemony of the greenback, from Fox News host Tucker Carlson<\/a> to U.S. Treasury Secretary Janet Yellen<\/a>. Within the next decade, the U.S. dollar will play a much less dominant role than it is today, partly due to its weaponization, renowned economist Jeffrey Sachs<\/a> was quoted as saying earlier in April. Their comments come amid efforts for \u201cde-dollarization\u201d led by BRICS<\/a>, of which Russia and China are members.<\/p>\n

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billionaire<\/a>, bonds<\/a>, China<\/a>, Currency<\/a>, Dalio<\/a>, de-dollarization<\/a>, debt<\/a>, Dollar<\/a>, Fiat<\/a>, Greenback<\/a>, international trade<\/a>, Investor<\/a>, Ray Dalio<\/a>, reserve currency<\/a>, reserves<\/a>, restrictions<\/a>, Russia<\/a>, Sanctions<\/a>, trade<\/a>, transactions<\/a>, United States<\/a>, US<\/a>, US Dollar<\/a>, Yuan<\/a><\/div>\n<\/div>\n

What are your expectations about the future role of the U.S. dollar in global trade and economic relations? Share them in the comments section below. <\/strong><\/em><\/p>\n

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\nLubomir Tassev <\/h6>\n

\nLubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens\u2019s quote: \u201cBeing a writer is what I am, rather than what I do.\u201d Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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