Decline of the Petrodollar

Iran Sanctions further threaten the petrodollar as Russia and Iran push back (1) (2) (3).

SOC states are increasing the amount of trade in non-USD currencies (4) and shifting their reserves away from the US Dollar (5) (6).

The petroyuan continues to undermine US dominance, with countries such as Saudi Arabia flirting with the new system (7) (8) (9), and driving up demand for RMB assets (10).

China and Russia could pose a threat to the USD (11) as Russia continues to buy gold reserves and China prepares to launch gold-backed oil futures (12) (13) and other SOC countries build up their gold reserves (14) (15).

US delays the inevitable by preventing Iran from liquidating frozen USD-denominated asset by pulling out of the Iran Nuclear Deal (16).

It is not the first, and won’t be the last time the world reserve currency changes. The general path of global currencies is that a strong currency which is backed by real assets becomes widely adopted as a world reserve currency. The currency then switched from an asset-backed one to a fiat system and slowly becomes more and more insolvent to the point that it loses credibility and a new currency replaces the old dying one (17) (18) thus becoming the next world reserve currency. History is being repeated and can therefore be used to prepare for the coming transition to both protect assets and strategic gains.

On the Iranian side, there will likely be continued aggressions by the US as it seeks to protect the 120bn of frozen Iranian assets from being de-dollarized.

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References

1. The Iran sanctions are a threat to the petrodollar

2. Russia And Iran Hit Back At The Petrodollar

3. The “Axis of Gold” Just Got Stronger

4. The Dollar is Slowly Losing Status as Reserve Currency

5. Shift From U.S. Dollar As World Reserve Currency Underway

6. De-Dollarization Escalates: Russia Sells Off Record Amount Of US Treasury Bonds

7. China Launching "Petroyuan"

8. The World's New Reserve Currency? Everything You Need To Know About PetroYuan

9. The golden Petroyuan and the Chinese bride in the Arabian desert

10. The Petroyuan Will Undermine US Dominant Role And Create A Sea Change In Global Markets

11. Can China Really Dethrone the Dollar?

12. Western Systemic Crisis 2017-2019 – The Almighty dollar against the Great Petro-Yuan Temptation

13. Only gold is true: BRICS plans to set up a single gold trading system

14. China Net Imported 1,300t Of Gold

15. Rekordreserven: Russland deckt sich massiv mit Gold ein – aber warum?

16. The US pulled out of Iran Nuclear Deal because it’s too broke

17. Death of a Reserve Currency

18. Weltleitwährungen – Das lehrt uns die Geschichte