There is pressure on the US dollar from entities like the IMF and nations like Saudi Arabia. But how bad is it?
We previously reported that China and the Saudis signed an agreement some believed would be the end of the US ‘Petrol’ Dollar. The USD was the currency used in oil trades for the past several decades. Such a deal could signal that the dollar’s pre-eminent status on the world stage.
The globalists may like this development but it is devastating for the US economy and businesses.
This week First Deputy Managing Director Gita Gopinath of the International Monetary Fund (IMF) warned that Biden’s spontaneous economic sanctions on Russia may weaken the dominance of the US petrodollar on the global stage.
Joe Biden and his handlers do it again. It’s as if they are purposely working to bring down America.
The Epoch Times reported:
The recent financial sanctions imposed on Russia for its invasion of Ukraine are threatening to weaken the dominance of the U.S. petrodollar as the world currency, said First Deputy Managing Director Gita Gopinath of the International Monetary Fund (IMF) to The Financial Times.
The sanctions may result in a more fragmented international monetary system, warned Gopinath.
She had previously said that the sanctions against Russia would not foreshadow the demise of the dollar as the world’s reserve currency and that the Ukraine crisis would slow growth, but not cause a global recession.
The United States, the EU, and the Group of Seven nations have hit Russia with a bundle of heavy sanctions and blocked the country from using SWIFT, the global communications service that clears international financial transactions, virtually cutting it off from the global financial markets and international trade.
The United States also froze $630 billion in assets held in international reserves by the Russian Central Bank.
The Russian government is retaliating by demanding payment in rubles or gold for purchases of energy and other important commodities.
“If they want to buy, let them pay either in hard currency, and this is gold for us, or pay as it is convenient for us, this is the national currency,” said the head of Russia’s energy committee, Pavel Zavalny.