The US dollar retains dominance in 2022, Global Times, a Chinese newspaper, reported. The power of its legal tender gives the United States far-reaching advantages over its competitors. While the European Union is dealing with the energy crisis, the stronger dollar has left the region's currency far behind.
Global Times says that the Russia-Ukraine conflict and Europe's energy woes greatly benefit the United States. Amid the current geopolitical developments, US gas suppliers were able to find new markets to sell the commodity, tighten control over the EU, and strike Russia’s key exports a blow.
In this light, the European Union will have no other choice but to increase LNG imports and search for new suppliers, Global Times asserted. This is mainly due to the indefinite shutdown of Russia’s Nord Stream pipeline, which caused an increase in demand for LNG carriers to Europe.
Lin Boqiang, the dean of the China Institute for Studies in Energy Policy at Xiamen University, says energy prices will remain sky-high for as long as the restructuring of the global economy is over. The expert believes that inflation will stay at a record rate despite the higher cost of LNG imports to Europe from the United States. Lin Boqiang also forecasts that the eurozone will face electricity shortages and disruptions in production and supply chains this winter.
Earlier, Gazprom announced it would shut down the Nord Stream pipeline for repairs because of a leak detected in the Trent 60 turbine.
