Monday, May 20, 2024

A cautionary message from a North Korean analyst suggests that recent actions by the United States to restrict the use of the dollar, coupled with the increasing interest of nations in joining the BRICS bloc, are hastening the decline of the US dollar as the world’s dominant currency.

In an article published by the Korean Central News Agency (KCNA), North Korea’s state media, titled “Expansion of BRICS is an inevitable result of the present unfair international economic order,” international affairs analyst Jong Il Hyon shed light on the primary motivation behind several countries gravitating towards the BRICS bloc. He attributed it to the prevailing unjust and irrational international economic order, which revolves around the US-led monetary system built on the dollar.

Jong explained that the US, having amassed considerable wealth during World War II, established the Bretton Woods system in July 1944, with the dollar as the international standard currency. However, he argued that since then, the US has engaged in global exploitation, leveraging its dominant position in currency minting and utilizing the dollar as a tool to achieve its political objectives. Jong remarked that the international monetary system centered on the dollar, along with military might, has been pivotal to US dominance over the world.

Expanding on the historical progression, the North Korean analyst highlighted how the US has employed various means over nearly a century to maintain the supremacy of the dollar as the primary currency. Starting from the gold dollar in the 1940s, followed by the oil dollar in the 1970s, and now the debt dollar, he claimed that the US has resorted to every possible method. He stressed that the US has not hesitated to impose financial sanctions on countries that displease it, leveraging the dollar’s predominant position. The analyst cited the example of the financial sanctions imposed on Russia after its invasion of Ukraine.

Jong underlined that these actions have led to a reduction in reliance on the US dollar and an increased adoption of national currencies for international trade by several countries, including the BRICS nations and members of the Association of Southeast Asian Nations (ASEAN). Particularly noteworthy is the BRICS’ proposal for a common currency, which is expected to be discussed during the upcoming leaders’ summit.

According to the North Korean analyst, this trend of de-dollarization signifies that the assertive and arbitrary actions taken by the US in its pursuit of global dominance have expedited international efforts to move away from the dollar, stimulated the creation of a new monetary system, and encouraged numerous countries to align themselves with the BRICS. He argued that the US’s sanctions and pressure are now boomeranging and undermining its own position.

Jong highlighted that, at a recent meeting of foreign ministers, the BRICS member states agreed to promote the use of national currencies for trade settlement among themselves and with their allies. Observing the steady increase in the BRICS economic bloc’s political influence on the international stage, the analyst stated that it is posing a challenge to the existing international order and financial system led by the US and the West. In conclusion, he remarked that the unprecedented international efforts to limit the use of the dollar and the inclination of many countries to join the BRICS are accelerating the decline of the dollar as a key currency and the demise of US hegemony associated with it.

Please share your thoughts on the North Korean analyst’s perspective regarding US dollar dominance and the challenges posed by the BRICS in the comments section below.

Frequently Asked Questions (FAQs) about Dollar dominance

What is the main concern raised by the North Korean analyst in this text?

The North Korean analyst expresses concern about the accelerated decline of US dollar dominance due to restrictions on its usage and the increasing interest in the BRICS bloc, which poses a challenge to US hegemony.

How does the North Korean analyst describe the international economic order?

The analyst describes the present international economic order as unfair and unreasonable, with a focus on the US-led monetary system built upon the dollar. They argue that this system has allowed the US to exploit its dominant position and use the dollar as a tool to achieve political objectives.

What examples does the North Korean analyst provide to support their claims?

The analyst highlights how the US has historically maintained the supremacy of the dollar through different means, such as the gold dollar in the 1940s, the oil dollar in the 1970s, and the debt dollar at present. They also point out instances where the US imposed financial sanctions, like those on Russia after the invasion of Ukraine, to exert control using the dollar’s predominant position.

What impact does the North Korean analyst suggest these actions have had on the dollar’s dominance?

According to the analyst, these actions have resulted in a reduced reliance on the US dollar by various countries and an increased adoption of national currencies for international trade. They argue that this trend, coupled with the BRICS nations’ proposal for a common currency, indicates an acceleration of the decline of the dollar as a key currency and a challenge to US hegemony.

How does the North Korean analyst view the role of the BRICS bloc in this context?

The analyst sees the BRICS bloc as a significant factor in challenging the existing international order and financial system led by the US and the West. They emphasize that the BRICS’ efforts to promote the use of national currencies for trade settlement and the bloc’s growing political influence are contributing to the diminishing role of the dollar and undermining US hegemony.

More about Dollar dominance

  • [Expansion of BRICS is an inevitable result of the present unfair international economic order](link to the article)
  • [Bretton Woods system](link to more information)
  • [BRICS](link to more information)
  • [Association of Southeast Asian Nations (ASEAN)](link to more information)
  • [De-dollarization](link to more information)
  • [US Dollar Dominance](link to more information)

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1 comment

Bookworm98 June 28, 2023 - 6:34 am

Interesting perspective frm North Korean analyst on the decline of USD & BRICS’ challenge to US hegemony. Need more diverse viewpoints to understand global dynamics.

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