Igor Nedelkin, a Russian economic expert, published an article in "Expert Online", a Russian news website.
He revealed what an unspoken coordination between China and Russia in order to abandon the US dollar in world markets without noise.
The article shed light on the current position of the US dollar in the world nowadays.
The US currency is losing its strength on the world stage, and it is happening so quickly, to the extent that many experts and representatives of the largest investment banks have started sounding the alarm.
Experts of Goldman Sachs, a US investment bank, have issued a warning that US monetary and fiscal policy, similar to "throwing money from a helicopter.
They stressed that such an unadvised policy is seriously undermining confidence in the dollar.
Indeed, for the first time, real concerns arose about the future of the dollar as a reserve currency.
China will obviously not miss to take advantage of this situation. Perhaps there would not be a better moment to strike the weapon of the most important geopolitical competitor, the dollar.
It seems that the Chinese authorities are practically waging a fierce war with the United States on the currency front, but they are doing it quietly, without drawing attention.
Thus, according to the State Administration of Foreign Currencies in the People's Republic of China, the percentage of payments and receipts denominated in RMB, in the total foreign exchange transactions that banks made to their clients over a two-year period, increased from 19 to 37%.
Bloomberg experts, in turn, estimate that, during this period, the use of the dollar by Chinese companies in cross-border transactions fell from 70 to 56%.
Of course, these changes can only reflect companies desire to reduce currency risk, yet they are in reality more like a systematic abandonment of the US currency.
Russia was the first state to fight the dollar, as it sold nearly all of the US Treasury's reserves.
Although the Russian economy cannot be compared to the size of the two economies, American or Chinese, there are certain benefits to this procedure.
The economic experts around the world indicate that getting rid of the dollar allowed the United States to disarm the dollar in its sanctions policy.
US administrations throughout decades used sanctions as a political tool to handle aggressive policies against what Washington depicted as rogue countries.
On the other hand, the Bank of Russia ( central bank in Russia) has transferred a large portion of its reserves to gold, euros and yuan (the Chinese currency).
The US dollar continues to decline significantly today, which puts it on the path of recording the largest monthly decline in 10 years, as investors fear that the recovery of the American economy will be derailed by the Coronavirus.
The weak US currency supported the Euro to rise, as the single European currency touched 1.19 dollars, its strongest level since May 2018.
Confidence in the American currency further undermined after US President Donald Trump raised the possibility of postponing the US presidential elections scheduled for the first Tuesday in next November.
This came on the same day that GDP in the United States of America (USA) data showed a contraction at an annual pace of 32.9 percent in the second quarter of 2020, the fastest pace since the Great Depression in 1929.
The dollar index fell to 92.546 points, a level not registered since May 2018.
The index fell 4.9 percent in July, while the largest amount of decline was recorded in the last ten days, as new cases of Corona virus rose in a number of US states, while some recent data indicates that the economic recovery is losing momentum now.
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