Foreign media: Harvard University economist Kenneth Rogoff has recently indicated that the United States is using financial and trade instruments, such as sanctions, tariffs and others, to weaken the United States dollar in reverse. According to him, such practices could create pressure in the short term, but in the long run they could lead to a reduction in the reliance of more countries on the United States dollar system.
Sanctions and tariffs are the reverse thrust.
In an interview, Rogoff stated that the United States was using the United States dollar as a geotechnical tool. Such an approach would not stabilize the dollar position, but would encourage other countries to find alternative avenues. In his view, the de-dollarization process could be further accelerated once Washington continued to press for financial restrictions and trade threats.
He linked this trend to the Trump Government ' s foreign policy, arguing that, for the White House, tariffs and sanctions were no longer merely economic instruments, but were also influencing the choices of the global financial system.
Europe is also expanding alternative networks.
According to Rogoff, China is not alone in driving this change. Europe is also expanding its international financial system and is trying to reduce its dependence on dollar clearing networks in some transactions.
According to him, if the financial pressure in the United States were to be further upgraded, the current trend could be significantly faster, and more cross-border payment and settlement arrangements would shift beyond the United States dollar system. As a result, the distribution of international financial power may also become more diffuse and less highly concentrated in the United States.
United States dollar peace under pressure
According to this review, the more frequent use of customs and financial sanctions in the United States in recent years may be destabilizing the so-called “Pax Dollar”, i.e. the United States dollar-dominated international financial order.
Rogoff mentioned that if the United States were to use such tools in a comprehensive manner to pressure China, it could provoke Chinese countervailing and promote the continued expansion of alternative payment networks. The central judgement of the article is that the more evident the weaponization of the United States dollar, the stronger the incentive for other economies to establish parallel financial corridors.
At the market level, such discussions do not reflect the loss of dominance of the United States dollar in the short term, but the possible longer-term decentralization of global settlements, reserves and cross-border payment systems.