The biggest blame must fall on the Saudis for pricing oil in US$

The biggest blame must fall on the Saudis, and the Gulf oil states for pricing oil in US$, which gives the backing for the US$ hegemony.

From then on, the USA saw the opportunity and weaved everything into the US$ hegemony - the conduct of trade and settlement, a godsend for them in fact. Today, untangling the whole system is an invitation to a messy affair. The USA knows that and the world knows that. BRICS is just doing it gingerly, not to upset the global financial system that affects every country.

China knows it well enough to not even resorting to dumping its treasuries too aggressively. That will cut both ways if China just dump treasuries too fast to punish the USA but will make what is left of anything it holds lose value which will not benefit China obviously. Doing it progressively is a much better choice, and China is doing exactly that.

But de-dollarization must continue, however slow and tedious it may be. The result may not be highly obvious, but looking at the fall in the global usage of the US$ over the last decade shows that the world is waking up.


Anonymous