On April 5, the Valdai Club hosted an expert discussion, titled “The New Economic Order: Is it Really Possible to End the Dollar Monopoly?”
One of the important trends in modern international development has been a change in the established rules of the world economic order. The major non-Western powers, including Russia and China, are focusing on building a new type of relationship based on the equality of all parties in the global economy and the absence of domination by individual countries that establish their own customs and rules for everyone.
De-dollarisation is becoming an increasingly significant tool for changing the world economic order. In many ways, it is the dollar’s monopoly in world trade and the financial system that has led to the current imbalances and inequalities. The past year has recorded an increase in trading in national currencies. For Russia, the main impetus on the path to the transition to settlements in national currencies was the sanctions pressure from the West. In 2022, the share of transactions in national currencies within the Eurasian Economic Union increased to 75%. Early this year, Saudi Arabia announced its readiness to conduct transactions for the sale of oil in the local currencies of the countries it does business with, and on March 29 it became clear that China and Brazil had entered into an agreement on mutual settlements without the use of the US dollar.
However, until dollar abandonment becomes a new reality, for some countries this process may take decades. Experts do not exclude the possibility of creating a single world currency in the future, which would exist without being tied to a particular issuing country, and could have a digital format.
How realistic are the prospects for such a massive change in the world economic order? What will replace the dollar? How will abandoning the dollar change the global financial system? Participants in the expert discussion tried to answer these and other questions.
- Dmitry Birichevsky, Head of the Department for Economic Cooperation of the Russian Foreign Ministry;
- Nathalia Zaiser, Chair of the Board/Founder, Africa Business Initiative Union;
- Alexander Losev, member of the Presidium of the Council for Foreign and Defense Policy (SVOP);
- Dimitri Laskaris, lawyer and Green Party of Canada activist;
- Radhika Desai, Professor at the Department of Political Studies and Director, Geopolitical Economy Research Group, University of Manitoba, Winnipeg, Canada.
Working languages: Russian, English.
- Oleg Barabanov, Programme Director of the Valdai Discussion Club.