{"id":15653,"date":"2025-05-03T20:00:00","date_gmt":"2025-05-03T18:00:00","guid":{"rendered":"https:\/\/www.11onze.cat\/?p=15653"},"modified":"2025-05-02T12:15:36","modified_gmt":"2025-05-02T10:15:36","slug":"de-dollarisation","status":"publish","type":"post","link":"https:\/\/www.11onze.cat\/en\/magazine\/de-dollarisation\/","title":{"rendered":"De-dollarisation: a rising trend"},"content":{"rendered":"
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The hegemony of the dollar as the reference currency in global trade and as an instrument of monetary liquidity have granted power and privilege to the US for decades, but in recent years there has been fear that a growing number of countries are managing to decouple their economies from dependence on the dollar. We analyse the reasons behind it.<\/b><\/h3>\n

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August 15 marked 50 years since President Richard Nixon assembled his team at Camp David to announce that he was suspending the dollar convertibility into gold. It was <\/span>the beginning of the end of the <\/b>Bretton Woods Agreements<\/b><\/a> and became effective the following year when Nixon formalized it as a permanent decision.<\/span><\/p>\n

Until then, the dollar was a currency based on the existence of gold as a counterpart. From that moment on, it became a fiat currency, money placed on trust, with its<\/span> value derived from the relationship between supply and demand<\/b> and the stability of the issuing government. A value that, unlike the guaranteed currency, is based on people\u2019s faith, and may lose its value due to inflation, or even become inoperative in case of hyperinflation.<\/span><\/p>\n

This new monetary framework replaced the intrinsic value granted by the demand for gold, mainly from the jewellery sector, with the creation of the petrodollar system, ergo establishing the dollar as the oil transaction currency, which <\/span>forced any country willing to buy oil, to convert its currency into dollars<\/b>. Such a system creates a\u00a0 dollar surplus that must be recycled and invested in the purchase of US government bonds and treasury bills, and consequently, creating an almost unlimited demand for the issuing country\u2019s debt, a fact that allows the US to print large amounts of money without consequences. It is like a government black card.<\/span><\/p>\n\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n\n

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