Goodbye, King Dollar

4.11.23 - Goodbye, King Dollar

Gold last traded at $2,003 an ounce. Silver at $25.05 an ounce.

Goodbye, King Dollar -Daily Reckoning

by James Rickards

I've written for years about different nations' persistent efforts to dethrone the U.S. dollar as the leading global reserve currency and the main medium of exchange.

At the same time, I've said that such processes don't happen overnight; instead, they happen slowly and incrementally over decades.

While that's true, the process is accelerating in ways no one could have anticipated just over a year ago.

The extreme economic sanctions against Russia, including its ejection from the SWIFT global messaging system, have revealed to other nations that the U.S. can do something similar to them if the U.S. disapproves of their conduct.

None of the sanctions would be effective or even possible without the use of the dollar and the dollar payments system.

So, after 79 years under the Bretton Woods arrangements, 52 years since Nixon closed the gold window, and 49 years since the petrodollar agreement with Saudi Arabia, the reign of King Dollar as the world's leading payment currency is rapidly coming to an end.