Dollar Hegemony: The fight of China and Russia for World Power.

Babajide Babatunde M (BBM)
2 min readApr 1, 2023

My 2 cents…

The use of the US dollar as the primary currency for global transactions has been a longstanding practice, known as dollar hegemony. However, in recent years, there has been a growing trend towards countries seeking alternatives to the US dollar, particularly in light of the dominance of the US in global affairs and concerns over the stability of the US economy.

China and Russia have been among the most vocal proponents of reducing reliance on the US dollar, and have taken steps to promote the use of their respective currencies, the yuan and the ruble, in international transactions. This has included initiatives such as the establishment of bilateral currency swap agreements and the creation of new financial institutions, such as the China-led Asian Infrastructure Investment Bank and the BRICS New Development Bank.

While there are potential benefits to reducing reliance on the US dollar, such as increased economic independence and reduced exposure to currency fluctuations, there are also potential challenges and risks associated with such a shift. For example, it could lead to increased volatility in global currency markets and could pose challenges for countries seeking to manage their foreign exchange reserves.

Overall, the shift away from the US dollar in global transactions is a complex and multifaceted issue that is likely to continue to evolve in the coming years.

Why am I having a conversation around this topic? Below are the BREAKING NEWS during the week as regard the BRICS

China and Brazil reached a deal to trade in their own currencies, removing the US Dollar as an intermediary.

China and France have completed their first LNG gas trade using the Chinese Yuan.

No currency is as liquid as USD. NO currency is close! Russian has been selling its oil to other European countries in Russian rubles before and more since the Ukraine — Russia war

The fight is against the USD and but they can’t win even in 50 years.

USD is backed by gold cos USD note was originally a gold deposit certificate. What is the yuan and ruble backed with? Oil? Volatility?

The forecast by some experts that the FED will hike MPR may not be true. I don’t think oil transaction between China and France is enough to bring down USD easily

My opinion

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Babajide Babatunde M (BBM)

A seasoned and resourceful tax and financial market analyst, knowledgeable and with great learning skills.