A Chinese media agency considered that Washington is regarded as one of the parties in the ongoing conflict in Ukraine even "without firing a single shot or deploying any (American) soldiers in Ukraine," through the "weapon of dollar dominance," confirming that this dominance has started to decline.

According to the report published by the Chinese agency "Xinhua" today, Friday, Washington enters the conflict by using its "global financial superiority as a weapon."

The report considered that Washington's financial terrorism contributes to "escalating the already highly charged confrontation and sending shockwaves worldwide."

The report pointed out that since the start of the Russian special military operation in Ukraine, Washington quickly imposed financial sanctions against Russia and threatened to "crush the Russian economy," and the report indicated that the repercussions of this policy were clear on the world and Russia.

The report noted that these sanctions fueled sharp rises in oil and natural gas prices globally. The sanctions also contributed to the "significant increase in major commodity prices, accelerating high inflation in many countries and weakening the already fragile global recovery from the pandemic."

The report explained the method followed by Washington characterized by exploiting the "global dominance of the US dollar, turning the international financial system into an international sanctions system."
 

"An expensive privilege" turned into a dangerous weapon
The agency touched on Washington's replacement of fixed exchange rates in the mid-1960s based on the gold standard with a global system relying on the dollar as the primary means of cross-border payments and reserves, which was described by the then French finance minister, Valéry Giscard d'Estaing, with the phrase "an expensive privilege," expressing his discontent with "the United States benefiting from dollar dominance to serve its self-interest."

"Xinhua" considered in its report that Washington, over 50 years, transformed this "expensive privilege into an expensive weapon for the comprehensive financial destruction of geopolitical conflict, pulling the trigger several times."

The agency noted that America implemented this policy against the backdrop of its dealings with the Iranian nuclear issue, where it expelled Iranian banks from the "SWIFT" system and banned Iranian energy imports.

The recent sanctions and threats to impose more sanctions on Russia are another prominent example showing that Washington has increasingly become unprincipled through abusing its dollar dominance for purposes serving its own interests.

The report stressed that the international community must "remain more vigilant than ever against Washington’s unlimited financial terrorism," pointing out that "America’s recklessness reminds all countries of the serious possibility of being isolated from the global financial market at Washington's whim."

Dollarization cancellation is a rising option worldwide
The report noted that countries day by day are working on policies to avoid the American method of "financial terrorism," where the "acceptance of dollarization cancellation as a rational option is growing among more" countries.

Since exactly 2000 when Washington began using dollar dominance as a tool for geopolitical coercion, the trend of placing the dollar as the dominant reserve currency in the world has been declining.(Xinhua Agency)

The report pointed out that currencies of some emerging economies such as the "Chinese Renminbi" have started gaining a greater share in international foreign currency reserves and cross-border transactions, noting that "the value of a currency depends on people's trust in its source, usually the country's government. The erosion of dollar dominance is a predictive indicator of the shrinking trust the world holds toward Washington."
 

"The dollar tower" began to collapse with the withdrawal of its "blocks"
The Chinese agency's report stated: "The world's trust in the US dollar and the global financial transaction system supported by the dollar has begun to decline. There is only one way to explain the madness of Washington politicians: they have become so arrogant that they cannot make rational decisions."

The agency likened the current situation to the block game "Jenga," considering that the dollar tower still stands, but the blocks of this "tower" are being pulled out sequentially.

The report explained that the total and complete collapse of this tower may take some time, "but it seems inevitable in the future if Washington continues on the wrong and destructive path."