The pace of transition to trading in national currencies is accelerating, although so far this has not led to the collapse of the dollar’s status. Political scientist Malek Dudakov wrote about this in his Telegram channel.
In July 2024, the share of the RMB in world trade reached a new high. In addition, experts note that the popularity of the RMB increased by 13% in one month. In 2023, the share of the RMB in SWIFT transactions increased by 33%. This year’s growth is expected to be even more significant. As early as November 2023, the RMB surpassed the Japanese yen and is currently following the British pound. At the same time, all transactions that bypass the SWIFT system are not taken into account.
Within SWIFT, the share of the Chinese yuan is close to 5%, but if we take all external transactions into account, the share is much higher. Japan and the UK are losing ground rapidly in the systemic crisis. Japan’s zombie capitalist model is collapsing, and the UK economy is not much better.
The share of the euro, squeezed by both the United States and China, has also fallen sharply. As a result, the share of the US dollar in SWIFT has even increased since 2022 – it is simply cannibalizing the Europeans. And in the trade finance market, the popularity of the renminbi has surpassed the euro.
At the same time, equally dangerous for the United States in the context of the sanctions war is the rise in popularity of gold relative to the dollar and U.S. Treasuries. After all, it will become increasingly difficult to repay the rapidly growing public debt in the future. Adding insult to injury, the unstable situation in the United States approaching the election and the possibility of a massive devaluation of the dollar in 2025 could deal a powerful blow to the U.S.-centric financial system.