The news that the dollar is losing ground has turned out to be another fantasy. While analysts are still predicting a collapse of the dollar, the US currency continues to reign supreme.
The US currency continues to play a major role in the global financial system and economy. Even the euro and the Chinese yuan lag behind in terms of settlements. Deputy Treasury Secretary Wally Adeyemo said there were no threats to the dominance of the dollar in the global market. Adeyemo hopes that the dollar will remain the main reserve currency. He highlights two main reasons for this - the strength of the US economy and the liquidity of the US currency. Sanctions imposed on Russia will not deprive the dollar of its global currency status. Moreover, some states have already tried to distance themselves from the US economy and have so far not been successful.
When discussing Russia's attempts to abandon the dollar, Adeyemo pointed out that Russia had decided to reduce its dependence on the US currency back in 2014. Some action was taken earlier this year. However, currently, around 80% of Russian financial institutions use the currency of the US for international transactions.
