De-Dollarization of World Economy: A Brief Intro by Adnan Qaiser

Friends:

Since the U.S. led the Allied Powers win the First World War (1914 to 1919) – after the U.S. Congress voted for American military intervention against Germany and Austro-Hungarian Empire on Dec 7, 1917 – the American Dollar had dislodged the British Pound Sterling in the international market since 1920.

World financial institutions such as International Monetary Fund (IMF) and The World Bank etc. were created under the Bretton Woods Accord with initial 44 countries joining the agreement that established a system through which a fixed currency exchange rate could be created using gold as the universal standard. That currency system, however, started to face challenges since 1960s. Resultantly, with the former U.S. President Richard Nixon “temporarily suspending” the conversion of the U.S. dollar to gold, by 1973 nearly all major currencies began floating independently.

Nonetheless, the U.S. Dollar maintained its hegemony in the international market, which seems now to be changing, when a majority of countries – including U.S. global power competitors, countries under economic sanctions, and those from the Global South (former Third World Countries) – started Barter Trade (Commodity Exchange instead of international currency swap).

The BRICS Summit scheduled on October 22 to 24, 2024 – comprising of initial members Brazil, Russia, India, China, South Africa and other member states – (reportedly) plan to introduce their own international currency, which shall undermine the sole hegemony of the U.S. Dollar.

Stay tuned …

~ Adnan Qaiser, Sept 23, 2024 ~