The power and predominance of the US dollar has long been seen, in developed and emerging nations alike, as both a comfort and a threat. Past attempts by other currencies, notably the euro and the yen, to challenge the greenback ultimately fell short.
China’s renminbi (RMB) has been viewed for more than a decade as the coming currency power. Yet for many reasons – capital controls and an onshore 2015 stock market crash – the push by Beijing to internationalize the yuan has promised more than it has delivered.
Now, geopolitical tensions, high US interest rates and Washington’s willingness to use its currency to penalize those with whom it disagrees, have compelled those who dislike the US and resent the power of the dollar to get vocal again.
The most cogent criticism came at a summit of the grouping of Brics nations (Brazil, Russia, India, China and South Africa) in August, when Brazilian president Luiz Inacio Lula da Silva called for the creation of a common currency to facilitate internal trade and investment and reduce vulnerabilities.
Such
