Is the throne of the world currency “Mr. Dollar” starting to shake?
What happened…
China and Brazil announced yesterday that they will conduct their foreign trade in their currencies instead of dollars. In addition, Saudi Arabia and China plan to sell oil in yuan instead of dollars. In other words, major trading countries of the world are starting to reduce their dependence on the dollar.
- Interestingly, 80% of world oil sales are made in dollars. So, if Saudi Arabia, the owner of oil, supplies oil to China in yuan, the demand for dollars will decrease by that amount.
Has the result impacted?
Furthermore, if you look at the movement of the dollar index (USDX), which tracks the dollar against six currencies, including the euro and the yen, it has fallen 9.5% from last year’s peak to $102.6. In other words, the dollar has already started to lose its strength.
- It is the same for Tugrik: Last year, the dollar exchange rate against the MNT strengthened by 21%, while the MNT has strengthened for the last 14 days in a row.
Finally… Well, judging by the situation, it seems that the time when all countries made payments in dollars is far away. In addition, 25 years ago, the dollar accounted for 72% of the world’s central banks’ currency reserves, but now it has decreased to 59%.
Source: lemonpress.mn
