China Seeks to Dethrone Dollar to Corner World Energy Markets

Contact Your Elected Officials
The Epoch Times Header

Why Beijing’s plan to supplant the dollar might succeed or fail

A longstanding plan by China and Russia to replace the U.S. dollar as the world’s reserve currency has had a string of recent headline-grabbing successes, as China methodically builds a rival monetary system that has been dubbed “Bretton Woods III.”

This currency initiative is the financial component of the Beijing regime’s strategy to gain influence over global energy supplies and overcome its key weakness as an energy-poor country—a strategy that appears to be working.

“Given the increased weaponization of the dollar for national security purposes, and the growing geopolitical rivalry between the West and revisionist powers such as China, Russia, Iran, and North Korea, some argue that de-dollarization will accelerate,” economist Nouriel Roubini wrote in a Financial Times op-ed, titled “A Bipolar Currency Regime Will Replace the Dollar’s Exorbitant Privilege.”

According to the International Monetary Fund (IMF), Bretton Woods III is “a new monetary order centered around commodity-based currencies.” This system features a network of agreements among China and commodity-exporting countries to trade in Chinese yuan or other currencies besides the U.S. dollar.

But dethroning the dollar as the world’s reserve currency is a side benefit to China’s goal of establishing reliable long-term access to the energy supplies it so desperately needs. Countries that have thus far agreed to accept Chinese yuan as payment for oil include Russia, Iran, and Venezuela. Together, these three oil exporters represent 40 percent of the world’s known reserves; all are currently under embargo by the United States.

Meanwhile, China and Brazil have struck a deal to ditch the U.S. dollar in trade transactions in favor of their respective currencies.

What Roubini called the “weaponization of the dollar” refers to the United States’ habit of using its financial authority to punish its adversaries, most recently ousting Russian banks from the foreign exchange-settlement system known as the Society for Worldwide Interbank Financial Telecommunication (SWIFT). Some analysts, however, warn that America’s politicization of the global dollar system is compelling an ever-larger number of nations to seek alternatives, and China appears happy to oblige them.

By Kevin Stocklin

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Truth & Treason

World War II has long served as a compelling...

Is an American confusing England for Britain a problem?

The difficulty is when Americans try to engage with British politics, where they keep saying "England" rather than "Britain."

Charlie Kirk Assassination Links Back to Israel

Those who really know how to use the tools...

Lessons from the Cleavers: “Leave it to Beaver” Can Teach Us A Lot

A Gen-Zer reflects on growing up watching Leave It to Beaver, grateful for the shows timeless lessons and and the values it taught.

Why Democracy, not Caesar, is the answer to our problems

Caesar-style leadership wins quick public support but inevitably sparks passionate resistance, conflict, bloodshed, and lasting social destabilization.

Judge Widens Block on Shutdown-Related Layoffs to Cover More Federal Workers

Judge expanded her order blocking Trump admin mass layoffs during the govt shutdown, extending job protections to more workers.

When Government Could Reopen–Key Dates to Watch

Federal govt shutdown enters third week with Congress deadlocked and no negotiations in sight as key deadlines loom to test lawmakers’ resolve.

Reader Poll: Hold Financers, Organizers Accountable for Political Violence

Respondents to our reader poll think authorities should examine the funding and coordination behind political protests that turn violent.

‘No Kings’ Protests Kick Off Across US as GOP Denounces Rallies as ’Hate America’

Large-scale events, as part of the “No Kings” protests, are taking place in cities including Washington, New York, Boston, New Orleans, and Atlanta.

Army Corps of Engineers to Pause $11 Billion in Projects During Shutdown: Vought

Russ Vought, director of the White House’s OMB, has added to the growing pile of federal projects paused during the government shutdown.

Trump Signs Executive Order Putting New Restrictions on Federal Hiring

Trump signed an executive order directing federal agencies to restrict hiring, with exceptions for immigration, security, and political appointees.

Trump Says He Has Authorized Covert CIA Operations in Venezuela

President Trump authorized covert CIA operations in Venezuela, expanding U.S. assets there to increase pressure on President Nicolás Maduro’s regime.

Trump Posthumously Awards Charlie Kirk the Presidential Medal of Freedom

President Trump posthumously awarded Charlie Kirk the Presidential Medal of Freedom in the White House Rose Garden on Oct 14, Charlie's birthday.
spot_img

Related Articles

Popular Categories

MAGA Business Central