{"id":21016,"date":"2023-05-17T00:08:02","date_gmt":"2023-05-17T00:08:02","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/us-dollars-importance-declining-in-international-transactions-and-as-reserve-currency-economist-says-economics-bitcoin-news\/"},"modified":"2023-05-17T00:08:02","modified_gmt":"2023-05-17T00:08:02","slug":"us-dollars-importance-declining-in-international-transactions-and-as-reserve-currency-economist-says-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/us-dollars-importance-declining-in-international-transactions-and-as-reserve-currency-economist-says-economics-bitcoin-news\/","title":{"rendered":"US Dollar’s Importance Declining in International Transactions and as Reserve Currency, Economist Says \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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A Canadian economist and professor at the University of British Columbia says the role of the U.S. dollar in international trade and as a reserve currency has been declining. \u201cOther currencies have been getting more important in international transactions and as reserve currencies,\u201d he stressed.<\/strong><\/p>\n

Economist Highlights Rising De-Dollarization Trend<\/h2>\n

Canadian economist James Brander shared his thoughts on the worldwide de-dollarization trend and the waning influence of the U.S. dollar last week. Brander is an Asia Pacific professor in the Strategy and Business Economics Division of the University of British Columbia.<\/p>\n

He explained that the U.S. dollar\u2019s dominance in the global market is declining as a growing number of countries are opting to conduct their international transactions using local currencies instead of relying on the USD, Press TV reported. While noting that the U.S. dollar is \u201cthe major reserve currency\u201d and \u201cover half of all international currency reserves in the world are U.S. dollar reserves,\u201d he said: \u201cThe role of the U.S. dollar has been declining. It\u2019s still big, but it has been declining.\u201d The economist added:<\/p>\n

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Other currencies have been getting more important in international transactions and as reserve currencies. Current geopolitical tensions have increased the move towards using other currencies \u2026 especially Russia, as well as China, and some other countries.<\/p>\n<\/blockquote>\n

\u201cMore local currencies are being used for international transactions,\u201d the professor reiterated. \u201cSo, we\u2019ve got a transaction between India and Russia and that\u2019s handled either in Indian currency or Russian currency. We\u2019re seeing more of that instead of U.S. dollars. I don\u2019t see a problem with that.\u201d<\/p>\n

The imposition of economic sanctions by the U.S., particularly on Russia, is widely viewed as a significant driving force for other nations to transition away from the USD. U.S. Treasury Secretary Janet Yellen stated last month: \u201cThere is a risk when we use financial sanctions that are linked to the role of the dollar that over time it could undermine the hegemony of the dollar \u2026 Of course, it does create a desire on the part of China, of Russia, of Iran to find an alternative.\u201d<\/p>\n

De-dollarization<\/a> efforts have been gaining momentum among the BRICS nations (Brazil, Russia, India, China, and South Africa). The economic bloc is also working on creating a common currency<\/a> that will help its members reduce their reliance on the U.S. dollar. The BRICS leaders are expected to discuss<\/a> the matter at their upcoming leaders\u2019 summit in August. In addition, 10 Southeast Asian nations<\/a> recently agreed to encourage the use of national currencies in transactions.<\/p>\n

Do you think the importance of the U.S. dollar in international trade and as a reserve currency is declining? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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

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