A bipolar currency regime is likely to replace the current greenback-based unipolar system, famed economist Nouriel Roubini believes
The US dollar’s status as the world’s main reserve currency is in jeopardy, renowned economist Nouriel Roubini, who predicted the global financial crisis of 2008, wrote in an article for the Financial Times on Sunday.
While no currency is yet capable of knocking the greenback off its pedestal altogether, the US currency is quickly losing its competitive advantage to the Chinese yuan, Roubini wrote.
“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…In a world that will be increasingly divided into two geopolitical spheres of influence – namely those surrounding the US and China – it is likely that a bipolar…currency regime will eventually replace the unipolar one,” the economist, dubbed ‘Doctor Doom’ by Wall Street for his tendency toward grim predictions, stated.
Sceptics note that the yuan cannot become a true reserve currency unless Beijing lifts capital controls, accepts permanent current account deficits, and the yuan’s exchange rate becomes more flexible. But the economist argues that such points are no longer valid, as Washington is actively undermining the allure of its currency with sanctions.
“Complete exchange rate flexibility and international capital mobility is not necessary in order for a country to achieve reserve currency status…And while China may have capital controls, the US has its own version that may reduce the appeal of dollar assets among foes and relative friends. These include financial sanctions against its rivals, restrictions to inward investment in many national security-sensitive sectors and firms, and even secondary sanctions against friends who violate the primary ones,” Roubini argued.
The economist also noted that China has been stepping up yuan transactions with its foreign partners, and said this trend will likely continue, with more emerging market economies welcoming “the ability to trade oil in [yuan] and to hold a greater share of their reserves in the Chinese currency… given that they do a great deal more trade with China than the US.” He added that new technologies, like CBDCs, Alipay-like payment systems, swap lines between China and its partners and national analogs of the SWIFT messaging system, “will hasten the advent of a bipolar global monetary and financial system.”
“For all these reasons, the relative decline of the US dollar as the main reserve currency is likely to occur over the next decade. The intensifying geopolitical contest between Washington and Beijing will inevitably be felt in a bipolar global reserve currency regime as well,” Roubini concluded.
https://www.rt.com/business/571017-nouriel-roubini-us-dollar-demise/
The Islamic Revolution Guards Corps (IRGC) warns the enemies that any act of aggression against the Islamic Republic will not go unanswered.
In a statement on Thursday, the IRGC issued a “stern warning” to the enemies after US forces launched strikes against the southern Iranian port city of Bandar Abbas.
Following the US military attack on a point on the outskirts of Bandar Abbas Airport with aerial projectiles, the IRGC carried out new strikes targeting the US air base from which the attack originated in the wee hours of Thursday, it added.
“This response is a serious warning to the enemy that they should know the act of aggression will not go unanswered,” the IRGC emphasized.
The elite military force warned of a “more decisive” response if the enemy repeated any act of aggression.
It also said the responsibility for the consequences of any IRGC response lies with the aggressor.
The statement comes after the IRGC Navy on Thursday forced an American tanker to turn back. The tanker ...
Volker Turk has warned that efforts to advance reparatory justice are facing resistance in “certain quarters,” and urged countries to back Africa’s push.
Reparatory justice for historical crimes, including colonialism, enslavement, and the trade in enslaved Africans, is crucial to dismantling systemic racism, UN High Commissioner for Human Rights Volker Turk has said.
Speaking at the UN Permanent Forum on People of African Descent on Tuesday, Turk linked present-day discrimination against people from the continent to the enduring legacy of colonialism and enslavement.
”Racism and dehumanizing rhetoric continue to permeate public institutions, communities, and online platforms,” he said, according to the UN Press Service. Turk noted that “digital technologies, including AI, are reproducing and amplifying existing biases against people of African descent.”
The remarks come weeks after the UN General Assembly adopted a resolution declaring the transatlantic slave trade “the gravest...
The US VP had to defend President Trump’s Gaza policy at a rally on a Georgia college campus.
US Vice President J.D. Vance was forced to defend Washington’s policy in Gaza after he was booed and heckled at a key MAGA event on Wednesday.
Co-founded by the late Charlie Kirk, Turning Point USA (TPUSA) is a conservative student group that has long been seen as a strong support base of President Donald Trump’s MAGA movement but is now showing apparent cracks.
Less than 15 minutes into a TPUSA event at the University of Georgia on Wednesday, Vance was interrupted by hecklers over US policy in Gaza, with one audience member shouting, “Jesus Christ does not support genocide!” As he attempted to respond, others shouted, “You’re killing children!” and “You’re bombing children!”
Vance replied by referring to Trump’s achievements as president, including securing a fragile ceasefire in Gaza, something he said the previous administration of Joe Biden failed to do.
“I ...
