De-dollarization accelerated / US' self-ban via trade war

Pars Today- A Chinese expert said that the American tariff war can accelerate the trend of de-dollarization.

Donald Trump, the American President, has launched a broad trade war against various countries for the recent days through imposition of new tariffs. According to Pars Today, quoting from ISNA news agency, Zhong Runio, expert from the Center of Russian Studies of "East China Normal University", Shanghai, said, "The American tariff war only undermines the status of US dollar as a global currency and accelerates de-dollarization."

According to Ronio, during the escalation of the war of tariffs, those countries which used to be concerned about the US dollar, will have the opportunity to strengthen unity and advance the trend of de-dollarization." He added, "In the present circumstances, cooperation in the field of de-dollarization in the financial section between China and Russia and the BRICS group has become more pragmatic."

This Chinese expert stressed that if China, Russia or other members of BRICS used to consider an alternative for dollar only as an assumption, during the tariff war, they should turn towards real promotion of this trend through practical changes.

In the same regard, Barry Eichengreen, Professor of Economics and political science at University of California made it clear in an article that the end of dollar's global hegemony might occur sooner than what is iamgined. He added, "If the United States is considered as a country which abandons its allies, the global status of dollar will be harmed."

Abdul Majid Sheikhi, Iranian expert of economics, also said on the issue, "The international mistrust will intensify de-dollarization and will make the US stock derivatives market more discredited." He stressed in an analysis that the US has been exposed to indirect sanction (self-ban) with the policies of Trump and de-dollarization is one of the consequences of this trend.

George Saravelos, co-Head of FX Research at Deutsche Bank in London, also said, "The damage has occurred. The market is reevaluating the structural attraction of dollar as a global reserve currency and is going through the rapid process of de-dollarization."

Moreover, many economic experts are of the opinion that dollar decline is not only economic but also political, and it may be accelerated with the US isolationist policies.    

RM/UR