Reality Check: Is the U.S. itself fueling de-dollarization?
Is the U.S. itself fueling de-dollarization? Prof. David Monyae, Director of the Centre for Africa-China Studies, noted that the "weaponization" of the dollar has posed many risks to developing countries, which further fuels the wave of de-dollarization.
Liu Xin: What about the over-dependency of these countries, traditionally, on the U.S. dollar?
David Monyae: The dollar has also created a lot of crises for developing countries, that there has been the weaponization of the dollar by the United States.The kind of actions that the United States (has taken) in terms of sanctions, the abuse of global public goods, such as SWIFT excluding some countries. And all these have brought countries to really think in terms of how they can trade without having the dollar to mediate that trade.
And therefore, I think there has been much talk about the BRICS currency. I think that talk, in my own view, is that it's going to also be a gradual approach. Creating a BRICS currency is quite complicated. And the rise of technology, particularly digital currency. I think that is one of the greatest fears in Washington that more and more trade and global trade will take place without the dollar being at the center of every trade we take in the world.