In recent years the US has regularly launched financial wars against those countries that dare to claim their own independent economic policies. And today in Washington, endless sanctions are being imposed against Russia. And against Turkey – huge import duties. That’s because both states have recently decided to abandon payments in dollars in international trade. Who is the next victim of American aggression?
Is it time to say goodbye to the dollar?
The US dollar has long been considered the main world currency – the standard to which any other national currency is tied. Therefore, most international transactions are denominated in US dollars. In addition, it is also a reserve currency for many states. Such a financial system on the planet took shape after the 1943 Bretton Woods Conference. The fact that it is time to give up the hegemony of the dollar, speak for a long time. But they really loudly and seriously announced this at the BRICS summit, which was held at the end of July in Johannesburg.
The attempt to abandon the dollar hegemony of the BRICS countries moved for a long time. In 2015, the Contingent reserve arrangement was introduced, conceived as an alternative to the International Monetary Fund (the latter, by the way, was also established in 1943 at the Bretton Woods Conference). The purpose of implementing this mechanism is to save the BRICS countries from the pressure of dollar liquidity.
For the same purpose, a New Development Bank was established with an authorized capital of $ 100 billion (equivalent amounts in national currencies, of course). Its headquarters are in Shanghai, and the first regional office is open in Johannesburg.
Among the new financial instruments – the emergence of the BRICS crypto currency, as well as the analog of special drawing rights (SDR). In addition, China has already proposed the introduction of futures oil contracts with a “gold” (and not dollar!) Coating.
By the end of 2017, the volume of mutual trade between the BRICS countries exceeded $ 102 billion. Which is not so much. And that is why it is especially important that at the South African summit they agreed to continue dedollarization of their economies not only from the BRICS countries, but also Turkey, whose president Recep Erdogan intends to join this interstate bloc.
Beating the US with their own weapons?
Turkey wants to transfer trade operations with major foreign economic partners (including Russia and China) into national currencies. This will, according to Erdogan, get rid of the economic and political pressure of the United States.
Today, US-Turkish relations are really at the lowest point for many years: the US administration criticizes the official Ankara for plans to supply Russian S-400 systems, for strengthening relations with Iran (including the military), for increasing duties on American goods and much other. Turkey has already seriously suffered from the unleashed US trade war: since the beginning of the year its national currency has depreciated by 20%. And now the real value of the Turkish lira is at the lowest level in history.
But also Recep Erdogan leads the most consistent and harsh policy in the confrontation with the United States. Back in May, he appealed to the nation demanding to get rid of American dollars in bulk, transferring them to the national currency – the Turkish lira.
And at a press conference after the South African BRICS summit, Erdogan promised to issue government bonds denominated in RMB to withstand the “prejudiced reports” of Western rating agencies and diversify the sources of financing for the national economy. Erdogan also urged the IMF to nominate its loans in gold instead of dollars to “save states and nations from American currency pressure.”
Russian officials with such statements are not in a hurry – even against the backdrop of a statement by the US State Department on the introduction of unprecedented rigidity (and, in fact, absolutely unjustified) sanctions against Russia. Unless Senator Igor Morozov said that a massive dollar dumping should be a response to Washington’s aggressive rhetoric.
“All countries that pledge national sovereignty as the basis of their foreign policy should make every effort to switch to settlements in national currencies,” Morozov said.
The rapidly changing world geopolitical situation “The Free Press” discussed with our permanent expert, senior researcher at the Institute of Oriental Studies of the Russian Academy of Sciences Professor Mikhail Roshchin.
The final version of anti-Russian sanctions is not yet known. In general, in your opinion, how far is the American establishment ready to go?
- In the US, in the circles of the political elite, the “demons” of the Cold War woke up. In the end, in the face of Russia, Washington once again recognized the serious
- silt, and consequently – and the enemy. The Russian map has actually turned into one of the main tools of the American domestic political struggle. But the Republicans’ successes in the upcoming fall mid-term elections to the Congress can contribute to reducing the anti-Russian rhetoric. Such a victory can make a decisive turning point, strengthen Trump’s position, and then the anti-Russian attacks of his opponents will gradually decline. “JV”: – Against the backdrop of the growing American pressure, Turkey asked BRICS. Do you think that Russia is obligated to continue to draw closer to Turkey on the basis of common anti-Americanism? “Clearly, Trump’s impulsive policy” blows up “the political balance that has developed in the international community today. We see this in the formation of new US relations with European allies and in the revision of our relations with Turkey. I am confident that in the new conditions Turkey, the further it is, the more it will be closer to Russia. And gradually – with Iran. At the same time, we are brought closer to Turkey not only by the growing political interaction, but also by the commonality of economic interests. Economic cooperation between Russia and Turkey arose at the dawn of “perestroika.” And in our days it is obvious that the number of interrelations has grown into a new quality. And the two presidents, Putin and Erdogan, are fully aware of its importance and potential for our two countries. “JV”: – The United States threatens to reduce the level of diplomatic relations with Russia. Is this, in your opinion, fraught with a complete rupture of military and political contacts in Syria? What could lead to real military clashes with the Americans in the Middle East? – In my opinion, some interaction between Russian and American military in Syria will continue. Just the US military, unlike politicians, is not interested in raising the degree of confrontation with Russia. And this position introduces a pacifying note that political “hawks” can not ignore. The American military, unlike politicians, perfectly understand what unpredictable consequences can lead to possible clashes between the two sides. In particular – in Syria, where both groups are very dangerously close to each other.