Robert Rabil, a political science professor at Florida Atlantic University, said in an article published on the French portal ProNobertis that the Ukraine crisis has weakened the US dollar and reinforced the global perception that a multipolar system is better for the world.
Currently, the US currency is the main currency, and most financial transactions in the world are done in dollars.
However, since 2000, many countries have been trying to get away from its use in international deals.
Recently, the professor noted, these efforts are gaining momentum as many NATO countries have supported Ukraine and imposed unprecedented sanctions on Russia.
In June 2022, the development of a new international reserve currency was discussed at the 14th BRICS summit.
In March 2022, the Eurasian Economic Union reached agreement on the need to develop a new international currency.
Russia made the Chinese yuan its de facto reserve currency, and Iran began using the Russian ruble in trade exchanges with Moscow.
In addition, China developed a strategy to introduce crude oil futures contracts in yuan and pay for imports in its own currency instead of US dollars.
Indeed, China and Saudi Arabia are actively negotiating to price some of their oil sold to Beijing in yuan.
The professor said this was one of the main goals of Chinese President Xi Jinping’s recent visit to Riyadh.
Among other things, for Chinese leaders, the Ukraine crisis has exposed many problems of a changing world.
The responsibility for shaping the new order, Rabil said, now rests with China, the Arab countries, and many others.
Confidence in the dollar is being lost and many countries are trying to reduce its use in various kinds of deals against the background of the unprecedented sanctions against Russia which have affected, among other things, the financial and banking sectors.
Russia embarked on a policy of abandoning the use of the US currency in international settlements.