Dedollarisation refers to countries reducing reliance on the U.S. dollar as a reserve currency, medium of exchange or as a unit of account.[1]
The U.S. dollar began to displace the pound sterling as the international reserve currency from the 1920s since it emerged from the First World War relatively unscathed and since the United States was a significant recipient of wartime gold inflows.[2] After the U.S. emerged as an even stronger superpower during the Second World War, the Bretton Woods Agreement of 1944 established the post-war international monetary system, with the U.S. dollar ascending to become the world's primary reserve currency for international trade, and the only post-war currency linked to gold at $35 per troy ounce.[3]
Since the establishment of the Bretton Woods system, the US dollar has been used as the medium for international trade. The United States Department of the Treasury exercises considerable oversight over the SWIFT financial transfers network,[4] and consequently has a huge sway on the global financial transactions systems, with the ability to impose sanctions on foreign entities and individuals.[5]
^"Explained: What Is Dedollarisation & Why Are Countries Dumping The US Dollar?". IndiaTimes. April 17, 2023.
^Eichengreen, Barry; Flandreau, Marc (2009). "The rise and fall of the dollar (or when did the dollar replace sterling as the leading reserve currency?)". European Review of Economic History. 13 (3): 377–411. doi:10.1017/S1361491609990153. ISSN 1474-0044. S2CID 154773110.
^"How a 1944 Agreement Created a New International Monetary System". The Balance.
^"Swift oversight". Swift.
^"Sanctions Programs and Country Information | U.S. Department of the Treasury".
Dedollarisation refers to countries reducing reliance on the U.S. dollar as a reserve currency, medium of exchange or as a unit of account. The U.S. dollar...
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