The dollar, America’s secret weapon against China

2023-05-02 07:52:00

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EDITORIAL. In the new cold war between Washington and Beijing, the international supremacy of their currency gives a lasting advantage to the United States.

By Luc de Barochez

American dollars and euros.
© ROBERT SCHMIEGLT/GEISLER-FOTOPR / Geisler-Fotopress / dpa Picture Alliance via AFP

Published on 02/05/2023 at 07:52

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Dn the 1920s, the dollar imposed itself as the main world currency by supplanting the pound sterling. A century later, will he fall from his pedestal and deprive America of one of its main levers of geopolitical influence? The signs of a decline of the greenback in favor of the Chinese currency are numerous this spring. The United Arab Emirates has concluded its first liquefied natural gas export contract to China denominated in yuan. Saudi Arabia and Iraq want to follow suit. Brazil and then Argentina announced that they would henceforth pay for their purchases from China in yuan rather than in dollars.

The trend seems at first glance inexorable, under the effect of the new cold war between China and the United States which pushes a certain name…