For a decade, it seemed that China would one day challenge the dollar Kingdom. So does that time really come? Is Petro dollar monopoly ending and now the period of Petro Yuan and local currencies is about to begin?
Paper currency is like a paper flower, no matter what the dollar. It has no smell. All her beauty has been borrowed. The day it was arranged, the crown of paper will fall on the ground on the day.
A large part of the dollar causes is also artificial. It is not ruling on the basis of its reality, it is rule on the basis of its impression. The day this notion has been injured, the state will also be broken.
One country makes one thing, the other buys it. In this process of buying and selling, this does not go to the US market. The United States has nothing to do with this transaction, but the transaction is still in dollars. The dollar sits down and becomes reliable.
Similarly, every country in the world, including Pakistan, has to put billions of dollars in the national treasury to have their trust in the global financial system. This increases the demand for dollars. He becomes reliable.
Suppose many countries of the world should not be required for dollars for trade and transactions, but should replace their local currencies. What will be the economic scenario of the world on this day?
When many countries do not require dollars, the need for dollar in the treasury will be reduced. Now suppose the countries of the world start putting gold or any other currency instead of dollars in their treasury. Where will the dollar stand at this time?
However, it is not easy to challenge this dollar monopoly. American power and global financial systems stand behind it. The collapse of the dollar is the collapse of all this system.
In the presence of the dollar, some weaker countries were proud and the results suffered losses. Saddam Hussain’s real crime has also said that he tried to remove oil trade with dollars.
It could have done a country like China that could be able to withstand the results of this financial ego, every two ways, economic and terrorists. China is slowly moving in this direction.
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China launched Yuan in 2009 and started trade in Yuan with 10 ASEAN countries in the first phase. At this time, Yuan has made himself to a great extent.
A few decades ago, the global foreign reserve was $ 71 %. Now it has fallen to 58 %. The possibility is that it should be more less because the world is now thinking about the dollar.
For example, bilateral trade between Russia and China no longer needs dollars. More than 90 % of their bilateral trade is now associated with local currencies. Nearly three dozen countries are no longer trading in dollars in Yuan.
Similarly, in front of Swift, China and Russia have created a new payment system. It is no longer bilateral as more than 100 countries in the world and more than 1.5,000 financial institutions have been linked to this new system.
Not only this, a regular new currency is being considered in BRICS countries. The United States understands its implications.
This is why it is warning BRICS countries from various angles. BRICS Replacement Pose will not be a trivial thing. BRICS means 36 %of the world’s GDP.
China is also getting rid of one dollar from its store. It has started prioritizing gold instead of dollars, and the way he is buying gold is an extraordinary development.
Last year, China bought 300 tonnes of gold. It has 2300 tonnes of gold reserves. That is, China is moving in a direction where its reserves will not be determined how many dollars in its treasury, but it will be determined how much gold it has and how much the yuan has.
China is a major buyer of Saudi Arabia oil. Perhaps the greatest. For a long time, China used to buy this oil in US dollars.
Now the purchase is not being sold in dollars, but also in yuan. As the matter grows. It is likely that the amount of yuan will increase in bilateral trade and shrink the dollar.
Will decide whether the dollar rule is over or not. However, it seems clear that the dollar Raj has rejected the dangers that will eventually lead to the collapse of their kingdom.
Note: This writing is based on the personal opinion of the author, independent Urdu does not need to agree.