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The US can counter de-dollarization efforts, a think tank expert says. Currency experts have sounded the alarm on what it could mean for the dollar hegemony in global trade and finance. To that end, the US should look to prevent counter-coalitions from forming, and do so by seeking out healthy foreign policy and positive trade partnerships, she said. To prevent the trend from accelerating further, the US should also actively pursue dollar stability through tech-based financial solutions, such as developments in digital payments. The same argument was posed by two other think tank experts on Monday, who warned that internal US dysfunction was the real threat to the dollar.
Persons: , Carla Norrlöf, Norrlöf, it's, dollarization Organizations: Service, greenback, Project Syndicate, Atlantic Council Locations: Russia, China, Washington
The dollar's dominance is sticky, political scientist Carla Norrlöf wrote in Project Syndicate. A de-dollarization collective is also unlikely as countries could lose access to the US security guarantee, Norrlöf said. "Governments would need to sever economic and political ties to the US. A de-dollarization collective is also unlikely as countries would lose access to the US security guarantee, Norrlöf said. Even governments who are not direct beneficiaries of American defense would hesitate to worsen relations with the US, a leading military power.
Persons: Carla Norrlöf, Norrlöf Organizations: Project Syndicate, Service, University of Toronto, Atlantic Council, greenback Locations: Wall, Silicon, China, Russia
Geopolitics won't diminish the dominance of the US dollar, the Atlantic Council's Carla Norrlöf wrote. Though sanctions have discouraged dollar reserves, they also may prompt them to grow. Meanwhile, talk of a rising multi-polar world order are confusing and imprecise. But, what often gets overlooked is that the conditions that prompted these sanctions can also induce a diversification into dollars, Norrlöf wrote. Even if these efforts were enough to crash the dollar's unipolar hold on trade, Norrlöf further points out that there is very little consensus on what would actually follow.
Persons: Carla Norrlöf, Norrlöf's, , Norrlöf Organizations: Service, Atlantic Council, Project Syndicate Locations: Wall, Silicon, Russia, China, Ukraine
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