Is the Dollar in Decline?

Chinese one hundred yuan note.

Chinese one hundred yuan note.

Jack Williams, Staff reporter

  Economists are concerned that China, with the help of Russia, is quietly trying to reduce the power of the American dollar. U.S. sanctions against Russia and other countries have put the leading currency at risk, and nations are seeking alternative currencies most notably China’s yuan. Russia and China’s leading goal is to restructure the international economy fast. 

  Last week in Brazil, Brazilian President da Silva urged BRICS (Brazil, Russia, India, China, South Africa) to replace the dollar. It is difficult to move away from the dollar because of the strength of the U.S. dollar historically.

  India is not set on switching to yuan, because of the tense relationship between China and India. India has agreed with the idea of diversifying foreign trade currencies. According to many reporters, the Maldives, Myanmar, the U.K., Germany, and New Zealand plan to create “vostro” private accounts in Indian banks. This will help these countries form deals for the supply of India’s goods and services more easily. 

  China and Russia’s joint effort to influence other countries to seek alternative currencies could  weaken the dependence on the dollar for the world economy.