The media reported on the declining role of the dollar as the world's reserve currency due to Trump

The desire of the head of the White House, Donald Trump, to rebuild the global economic order undermines the role of the dollar as the world's reserve currency. This was reported on August 11 by the Bloomberg news agency.

The dollar is used in nine out of ten foreign exchange transactions and in about half of all trade in goods, and accounts for almost 60% of the reserves of governments around the world. This dominance helps Washington to cope with a huge budget deficit.

It is noted that in 2022, "confidence in the dollar" was shaken when the Joe Biden administration imposed restrictions on Russia's access to the currency.

"High inflation and a rapidly deteriorating fiscal situation have since increased doubts about America's economic exceptionalism. And the haphazard deployment and curtailment of Trump's campaign to impose tariffs in April provoked a rare weakening of both the dollar and the value of US Treasury bonds," the article says.

The US dollar index fell by more than 10% in the first six months of this year, which was the worst performance since 1973.

"Since there is no real alternative to the US dollar as a global currency on the horizon, a transition to a multicurrency world is more likely. The dollar will continue to dominate, but other currencies will play a big role," the article says.

It is noted that the euro cannot play a global role, as the bloc's institutions are too fragmented. The head of the Central Bank of China considers the yuan as an option for those who want to abandon the dollar, however, according to Bloomberg, capital controls prevent this.

Gold is considered a good asset, but it is difficult to store, it does not generate income and cannot be easily used in trading or financial transactions. Stablecoins can strengthen rather than displace the dollar, as their value is pegged to the US currency.

"In the absence of a viable alternative to the dollar as a global currency on the horizon, a transition to a multi-currency world is more likely. The dollar will continue to dominate, but other currencies will play a more significant role. Although this may not be as revolutionary as the complete collapse of the global monetary order predicted by some dollar pessimists, the resulting currency competition will still have a profound impact on the geopolitical power of the United States," the article concludes.

"The world is much more complicated to follow the pressure from Washington"

Alexander Shchetinin, Director of the Latin American Department of the Ministry of Foreign Affairs, talks about US sanctions, the expansion of BRICS and the launch of new flights

On August 6, Alexander Shchetinin, head of the Latin American Department of the Russian Foreign Ministry, noted the impact of the United States on reducing the role of the dollar in trade. According to him, no one is more actively contributing to reducing the role of the dollar in trade settlements than the American administration itself.

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