Professor of political science at Florida Atlantic University Robert Rabil shared his vision of how the Ukrainian conflict might influence the US dollar’s exchange rate. His ideas were published on Brunobertez, the French news portal. Nowadays, the US dollar is the world’s main reserve currency which accounts for the lion’s share of transactions. Since nearly 2000, countries around the world have been poised to scale down the use of the US dollar. Robert Rabil says that the trend of ditching the US dollar has been getting traction, largely due to the anti-Russian sanctions imposed by the NATO countries in response to Russia’s invasion of Ukraine.
The expert recalled the 14th summit of BRICS held in June 2022 where participants brought up the issue of introducing a new world reserve currency. Previously, the Eurasian Economic Union reached an agreement on this matter.
Robert Rabil stated that the US dollar has been losing its leadership in international trade settlements on the back of the anti-Russian sanctions. For example, the Kremlin has already made the Chinese yuan its de facto reserve currency. Besides, Iran has been using the rial and the Russian ruble in its trade with Moscow.
The professor is certain that China and Arab countries have amassed enough power to set up a new world order and rule in international politics.
