Since the midst of 2020, experts have started making predictions about the end of the US dollar’s hegemony. Many countries are now trying to ditch the US currency as the main means of payment with foreign countries. However, Russia was one of the first countries that took steps to lessen the US dollar power. The country has been developing its de-dollarization strategy for several years.
The penchant of the US government for the protectionism policy may finally backfire. This is why the US traditional tactic to defend its rights and freedoms, using sanctions against countries that violate international agreements, may very soon lead to serious consequences. The sanctions against Russia are quite perilous to the greenback’s dominance. According to experts, they have shaken the position of the US dollar as the main world currency.
These facts are confirmed by a recent report from the US Congressional Research Service, which unveils the negative impact of US sanctions on the US dollar. Countries that are subject to various restrictions are gradually abandoning the US dollar, making payments in other world currencies. If Iran, Russia, and Venezuela do not cause much concern, such large economies as the EU and China could seriously damage the prestige of the US currency. The decline in the share of the US dollar in mutual settlements may lead to its serious weakening on the world market.
