Professor Rabil said the U.S. dollar’s position is deteriorating because of the crisis in Ukraine

The Ukrainian crisis has weakened the position of the US dollar and strengthened the global view that a multipolar system is better for the world, this opinion was expressed by Robert Rabil, professor of political science at Florida Atlantic University, in an article posted on the French portal Brunobertez.

Today the U.S. currency is the main currency, and the majority of financial transactions in the world are carried out in dollars. However, since 2000, many countries have been trying to move away from its use in international payments. These efforts have recently “gained momentum” as many NATO countries have supported Ukraine and imposed unprecedented sanctions against Russia, the professor noted.

“In June 2022, the 14th BRICS summit discussed the development of a new international reserve currency. In March 2022, the EAEU reached an agreement on the need to develop a new international currency. Russia has already made the Chinese yuan its de facto reserve currency, and Iran has begun to use the rial and Russian rubles in trade exchanges with Moscow,” Rabil pointed out.

In addition, China has developed a strategy to introduce yuan-denominated crude oil futures and to pay for imports in its own currency rather than U.S. dollars. In fact, China and Saudi Arabia are actively negotiating for Riyadh to price some of its oil sold to Beijing in renminbi. This was one of the main goals of Chinese President Xi Jinping’s recent visit to Riyadh, the professor noted.

Among other things, for Chinese leaders, the Ukrainian crisis has “exposed many of the problems of a changing world. Now the responsibility for shaping a “new order” lies with China, the Arab states, and many other countries, Rabil said.

Against the background of unprecedented anti-Russian sanctions that have affected, among other things, the financial and banking spheres, confidence in the dollar is lost, and many countries are trying to reduce its use in various types of settlements. Russia has taken a course to abandon the use of U.S. currency in international settlements.