The world has been multipolar for a while, but the current poles are not similar to the Cold War era.. There is great economic interdependence between countries and various factors..
We all know that the largest store and use of the dollar outside of the US is by China itself .. not for the eyes of the Americans, but because of the position of the dollar, and its strength..
For example, although China is the second largest economy in the world, the Chinese yen does not exceed 2% of the total monetary reserves in the world and does not even exceed the Australian dollar.. Strange right? No.. China actually benefits greatly from its control and manipulation of the price of its currency, as it enables it to maneuver to protect its exports of goods and make their prices appropriate.. Chinese exports are the backbone of the country and controlling the currency is a large part of it.. So far, China has significant restrictions imposed on trading in yen, the amount allowed to leave, etc., as it is not a currency that is completely open to international markets.. And if China wants to make its currency a hard currency in circulation and competing with the dollar, it must first lift all restrictions and manipulations, which is almost impossible given that China will lose its control over exports. Secondly, it is not ready to hold its currency hostage to international trades and global financial markets. In the end, great risks in exchange for goals that may not succeed, and when you see the matter from the perspective of Japan and the Germany to a lesser extent, the globalization of the currency does not always bring results. It may create crises in some cases that are difficult for a country to control (such as Japan in the nineties for example)..
Finally, here comes the actual superiority of the dollar (so far!), which is a legal, institutional and organizational superiority.. We can talk about the stupidity of politicians in the Western world until tomorrow, but no one can deny complete transparency and the tight and legal regulation of the US Federal Bank.. the confidence of international institutions and countries In the dollar, stems from these characteristics + besides that, a diversified, open and integrated economy makes the dollar’s dominance an inevitable security for a long time.. Even the global system followed the same approach. IF IT WORKS WHY CHANGE IT?
Recently, some theories have emerged that the dollar will lose its hegemony due to the sanctions on the Russian Central Bank, which showed everyone that the countries that own the stored currencies have complete control over that money, and that many countries will look for another refuge to avoid such scenarios. The matter is complicated. For example, the Russian Central Bank was offered to seize cash holdings by all countries that own hard currency, not just US dollar, (euro, yen, Japanese pound, Canadian and Australian dollars), and even going to some alternatives, such as gold, a limited precedent, because even storing gold when you want to sell it You will be obliged to sell it in the international markets that use the currencies that you are punished with, and even if you want to sell it to a friendly or neutral country such as China for example, then China must be in need or willing to buy that gold from you, otherwise why would they buy it as well? Or it can give you a lower price than the international market in order to sell it more expensive than that, but in this case what is the use of this stock of yours in the first place if you will sell it at a loss?
In sum: the world is not only Europe and America, but the western economy (North America + Europe + Australia + Japan and Korea) constitutes 75% of the global economy, and any alliance of these countries against any party is very influential .. the world is multipolar since a while, but the poles are not equal, and the West Pole is eerily huge and horribly controlled..
But luckily, resources, raw materials and the largest human mass are outside this pole, which creates a kind of balance..
good riddance
