Using the dollar as a weapon has backfired like a boomerang on US - French analyst Renaud Girard

Paris/Washington – French analyst Renaud Girard said that the United States used the dollar excessively as a tool of political pressure. Therefore, more and more countries have been leaving the US-dominated economic system. He added that a local currency-based system was an alternative to the dollar. Moreover, countries like Russia and China have even developed independent payment systems, said French analyst Renaud Girard while warning about the dollar’s fall. Besides, American analyst John Carney also confirmed this and claimed that it was inevitable that the dollar would lose its position as a reserve currency.

In the wake of the Russia-Ukraine conflict, the US and its allies have imposed massive sanctions on Russia. It also includes a ban on using the international system SWIFT (The Society for Worldwide Interbank Financial Telecommunication). Additionally, Russia had proposed using other leading currencies, including the Ruble currency, as an alternative. Major countries trading with Russia had accepted and also started implementing the proposal. On the other hand, China has taken rapid steps to increase the share of its Yuan currency.

In this background, the International Monetary Fund (IMF) and American think tanks had warned seriously about the US dollar. Senior economists of the Monetary Fund warned that there was an upheaval in the system related to international transactions. He had warned that some countries have been considering reducing the share of dollars in foreign reserves. Besides, an American study group also pointed out that some of the world’s central banks were reconsidering the rightness of their dependence on the US dollar. Now economists and analysts from other countries have also started making aware of the fall of the US dollar. The French analyst’s statement is part of it.

In an interview with the French daily Le Figaro, Girard claimed that US policies were responsible for the dollar’s decline. ‘Having turned their currency into an instrument of political pressure on other countries, the US unwittingly started a global movement to overthrow the dollar. The complete de-dollarization will not take place in an instant, but this is obviously the irreversible movement’, warned Girard. During the Russia-Ukraine conflict, the US and the West had decided to freeze billions of US dollars that were part of Russia’s reserves. French analysts pointed out that this phenomenon is part of the weaponisation of the dollar. Moreover, Girard said many countries worldwide began reducing the dollar’s share of their foreign reserves after the incident.

Furthermore, the US has also confirmed the statements made by French analysts about the US dollar. US analyst John Carney also warned that the dollar, the world’s strongest currency, will soon lose its position. Carney explained that this was not only a serious threat but also inevitable.

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