- North Korean analyst warns of an escalating trend towards the devaluation of the US Dollar as the world’s dominant currency due to rising BRICS influence.
- He states that the increasingly assertive and arbitrary actions of the US in enforcing its global dominance have prompted international efforts to reduce reliance on the Dollar.
As the BRICS alliance — Brazil, Russia, India, China, and South Africa — continues to strengthen, a North Korean analyst warns of a rapid end to the dominance of the US Dollar on the world stage. This shift, Jong Il Hyon posits, is catalyzed by the growing aspirations of countries to integrate themselves into the BRICS association, largely in response to the perceived injustices within the current international economic order.
The economic order Jong refers to, centres around the US-led international monetary system, of which the Dollar is the bedrock. According to Jong, the Bretton Woods system established post World War II was designed to uphold the dominance of the US, which managed to accumulate considerable wealth during the war period. This system he argues, gave the US unprecedented control over global finance, allowing it to exploit its dominant position for political purposes.
Jong’s report highlights that the US Dollar has, over the last century, been manipulated to maintain supremacy as the primary international currency. This manipulation has ranged from backing the Dollar with gold in the 1940s, tying it to oil in the 1970s, and now, being supported by national debt. Jong also critiques the use of the Dollar as a tool for economic sanctions against nations that oppose the US’s interests, citing the financial penalties imposed on Russia post the Ukrainian invasion as a classic case.
The result of these tactics, Jong proposes, is a growing global shift away from reliance on the Dollar, leading to an increased adoption of national currencies in international trade. This trend is particularly evident among BRICS nations and members of the Association of Southeast Asian Nations (ASEAN). The BRICS, interestingly, are considering the introduction of a common currency, a topic that is expected to feature in the upcoming leaders’ summit discussions.
Jong explains that this growing trend towards de-dollarization reflects a reaction against the US’s assertive tactics to maintain global dominance. Such actions, he suggests, have stimulated the creation of a new monetary system, encouraged nations to join the BRICS, and paradoxically hastened the erosion of the US’s position.
Jong points to a recent BRICS meeting where the foreign ministers agreed to promote the use of national currencies for trade settlements. This move, along with the rising political influence of the BRICS bloc, represents a significant challenge to the existing international order and financial system led predominantly by the US and the West.
In conclusion, Jong’s analysis underscores an evolving geopolitical landscape where the predominance of the US Dollar and the global hegemony attached to it are being increasingly challenged by emerging powers like the BRICS nations. The future of global economics may well be shifting towards a new order, one where multipolarity replaces unilateral dominance.