The US after World War-II found itself in a position of dominance in the global economy. The national security of USA has depended on petrodollar hegemony for decades.
The use of dollar for the international trade of petroleum and other commodities has helped in ensuring a constant demand for dollar.
But now, it looks like the de-dollarizing is accelerating the cracks in the petrodollar as the easy years of American monetary dominance over the globe through petrodollar is getting near to its end.
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Among the signs of that are:
- Saudi Arabia may be near to accept Yuan for oil exports to China
- China and Brazil announcing the end of using dollar in bilateral trade
- ASEAN countries are also looking to reduce dependency on dollar and etc.
That being disclosed, it's hard for US to enforce dollar reserve trade as the international standard.
US may outcompete other powers by enticing people to use currencies it dominates. If the market is feature rich, beneficial and easy to adopt that they are irresistible to the merchants on international level.
Would Chinese Yuan or other currencies be able to take the place of US Dollar? That would be a bit early to say but the recent reports sharing things happening globally do seem to be denting US dollar.
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