Trump Administration Worried About Declining Global Dollar Share Amid Sanctions Use
The New York Times has reported that the administration of Donald Trump is concerned about the gradual decline of the dollar’s share in global transactions and fears that the widespread application of economic sanctions could accelerate this trend.
According to the report, the White House is seeking to hold a meeting with Russian President Vladimir Putin on the sidelines of the G20 summit in Miami. At the same time, several experts have warned Moscow to proceed with caution regarding such an approach.
The New York Times writes that some analysts believe that easing certain sanctions imposed on Russia might be necessary for US economic interests, as the continuous fall in the dollar’s share in global trade is seen as detrimental to Washington.
The report also notes that Europe, which was once considered one of the world’s key industrial hubs a few years ago, is now facing reduced production capacity. Factory closures, mass layoffs, and rising energy costs are among the factors that experts say are putting pressure on the European economy.
Economists such as Nobel laureate Joseph Stiglitz have also warned that the dollar’s historical dominance is not guaranteed forever, and increasing reliance on the US financial system to enforce sanctions could push countries to seek alternatives and undermine confidence in the currency.
According to the report, BRICS-plus member countries now account for about 42.4 percent of the world’s GDP, and some Russian experts have called for completely abandoning the dollar system in foreign trade and even within the Eurasian Economic Union framework.
