North Korean Analyst: Dollar Dominance Facing Rapid Decline.
June 27, 2023: A North Korean analyst has warned about the accelerated decline of the U.S. dollar’s dominance in the global economy. In an article published by the Korean Central News Agency (KCNA), Jong Il Hyon, an international affairs analyst of the DPRK, highlighted the expanding membership of the BRICS bloc as an inevitable consequence of the existing unfair international economic order.
According to Jong, the primary reason behind numerous countries joining BRICS is the unfair and unreasonable international economic order centered around the U.S.-led monetary system, which relies heavily on the dollar. He argued that the U.S., having accumulated significant wealth during World War II, established the Bretton Woods system in 1944 with the dollar as the international standard currency. However, since then, the U.S. has exploited its dominant position in currency minting and utilized the dollar to pursue its political objectives.
Jong further explained that the U.S. has employed various means and methods to maintain the dollar’s supremacy as the key currency over the past century. From the gold dollar in the 1940s to the oil dollar in the 1970s and now the debt dollar, the U.S. has consistently used its position to impose financial sanctions on countries that displease it. An example cited by Jong is the imposition of financial sanctions on Russia following its invasion of Ukraine.
The analyst emphasized that these actions by the U.S. have reduced reliance on the U.S. dollar and increased the adoption of national currencies for international trade by several countries, including the BRICS nations and members of the Association of Southeast Asian Nations (ASEAN). Notably, the BRICS bloc is considering the proposal for a common currency, which will be discussed during an upcoming leaders’ summit.
Jong highlighted that the trend of de-dollarization indicates that the U.S., through its assertive and arbitrary actions in pursuit of global dominance, has unintentionally expedited efforts to move away from the dollar. This, in turn, has stimulated the creation of a new monetary system and encouraged numerous countries to join the BRICS bloc. Consequently, the U.S. faces the unintended consequences of its sanctions and pressures, undermining its position.
Furthermore, at a recent meeting of foreign ministers, the BRICS member states agreed to promote the use of national currencies for trade settlement among member states and with their allies. According to the North Korean analyst, the economic bloc is steadily increasing its political influence in the international arena and is becoming a challenge to the existing international order and financial system led by the U.S. and the West.
In conclusion, the warning from the North Korean analyst suggests that the U.S. dollar’s dominance in the international economic order is rapidly eroding. The unfairness of the existing system and the U.S.’s exploitation of its currency’s position has prompted many countries to seek alternatives, such as adopting national currencies for international trade. The growing de-dollarization trend significantly challenges the existing international order and the U.S.-led financial system.