SWIFT show that U.S. sanctions are having a different effect than the U.S. wanted

Also, more and more countries are moving away from settling their trade in third-party currencies such as the dollar or the euro, and instead are using their national currencies.

SWIFT show that U.S. sanctions are having a different effect than the U.S. wanted

The dominance of the dollar in international trade has declined sharply in recent months. Russian television has reported news from the Russian Central Bank, citing recent figures from SWIFT, showing that the dollar has lost its dominant position in global trade and has been overtaken by the euro.

Also, more and more countries are moving away from settling their trade in third-party currencies such as the dollar or the euro, and instead are using their national currencies.

The reason cited for the decline in dollar dominance is the escalating U.S. sanctions, which are causing more and more countries to abandon the dollar for fear of possible sanctions and to look for alternatives to settle payments and invest funds.

This trend has been expected; back in November 2018, Putin said at a panel discussion that the U.S. is hurting itself in the long run with the sanctions, first and foremost, because its global dominance is based on demand for dollars.

Literally at the time, Putin said of the U.S. sanctions and their consequences, "We don't want to withdraw from the dollar, the dollar is withdrawing from us.

Those who take these measures are not just shooting themselves in the knee, but a little higher. "In fact, the U.S. can only finance its gigantic budget deficits, and thus its gigantic military budget, by the world's demand for dollars.

If this demand falls too much, it is likely to lead to a collapse of the dollar, of the U.S. economy, and thus to a U.S. sovereign default.

This is not a scenario that will happen tomorrow, of course, but in all its wars the U.S. has always fought those countries and governments that wanted to move away from the dollar.

The escalating U.S. sanctions have now initiated a process that the U.S. cannot want, because more and more states and companies are turning away from the dollar.

When it was still individual small states like Iraq or Libya, the U.S. could fight it with wars, but now so many states are creeping toward this process that wars not only can no longer solve the problem, but would possibly even accelerate the process.

In addition, Russia and China have joined the process and the U.S. cannot "just" wage war against them.

And in the shadow of these great powers, many of their (trade) partners are also gradually withdrawing from the dollar.

The Russian Central Bank has now commented on this, and Russian television has reported on it in an article on its site, which I have translated.

"This is something that seriously undermines the reliability of the dollar as a reliable means of saving and payment for international participants.

Year after year, its use is declining," Sabotkin said at the Russian School of Economics conference.

According to the Central Bank's forecast, the share of national currencies in bilateral payments between countries will increase worldwide in the coming years.

Citigroup economists forecast the sharpest decline of the dollar since 1985 - by 20 percent after the mass vaccination against the coronavirus and the normalization of the world economy.

Demand for the dollar will decline, and problems in the U.S. will further lower its value.

Deutsche Bank also expects investors to abandon the dollar as a safe haven for savings.

The dollar has long dominated international payments.

But in October this year, the euro overtook the dollar in international payments for the first time since July 2013, when its share was 37.82%, compared with the dollar's 37.64%.

According to SWIFT, the euro has become the most widely used currency for global payments, overtaking the dollar in international comparisons for the first time since February 2013.

The European Union's single currency and the U.S. dollar are followed in international payments by the British pound and the Japanese yen.

The Canadian dollar has overtaken the Chinese yuan to take fifth place.

According to SWIFT, which processes cross-border payments for more than 11,000 financial institutions in 200 countries, these changes in October s