The global currency i.e. the US Dollar has witnessed a surge in the demand since its inception at the turn of the century. For decades now, the use of the US Dollar has been paramount in international trade. This has had tremendous benefits for the US financial system and for the US consumers, thereby giving the US government tremendous power and influence around the globe.

However, as the US economy continues to fade(inspite of some recent positive indications), it is going to be really hard to argue that the US Dollar should continue to function as the primary reserve currency in the world. Things have changed rapidly, and most Americans have no idea where these trends are unfolding….

Not so long ago, China and Japan struck a deal which will promote the use of their own currencies (rather than the US Dollar) when trading with each other. This was an incredibly important agreement that was virtually totally ignored by the media. The BRICS nations are on the verge of signing an agreement which will promote the use of their own currencies when trading with each other rather than the US Dollar. Furthermore, Russia and China have been using their own national currencies when trading with each other for more than a year now. Leaders from both the countries have been strongly advocating for a new global reserve currency for several years now and seem determined to break the power that the US Dollar has over the international trade.

In the recent memory, China has become Africa’s biggest trading partner, and China is now aggressively seeking to expand the use of Chinese currency on that continent. China and the UAE have agreed to ditch the US Dollar and use their own currencies in oil transactions with each other. Iran has been one of the most aggressive nations when it comes to moving away from the US Dollar in international trade. For example, it has been reported that India will begin to use gold to buy oil from Iran.

To add fuel to the fire, the UN has been issuing reports that openly call for an alternative to the US Dollar as the reserve currency of the world. In addition to the UN’s call, the IMF has also published a series of reports calling for the US Dollar to be replaced as the reserve currency of the world.

Yours truly believes that the US Dollar cannot be replaced overnight, but it is important to note that these changes are picking up steam. Clearly the conditions are right for a significant move away from the US Dollar. So when will this major shift occur? Watch this space for more!