In a thought-provoking analysis, a North Korean expert has sounded the alarm about the United States’ efforts to limit the use of the dollar and the growing interest of nations in joining the BRICS bloc, suggesting that these actions are accelerating the decline of the USD as the world’s dominant currency.
The Korean Central News Agency (KCNA), North Korea’s state media outlet, recently published an article titled “Expansion of BRICS is an inevitable result of the present unfair international economic order,” penned by Jong Il Hyon, an international affairs analyst of the Democratic People’s Republic of Korea (DPRK).
According to Jong, the primary driving force behind countries gravitating toward the BRICS bloc lies in the “unfair and unreasonable international economic order” that revolves around the US-led international monetary system, with the dollar at its core. He explained that the US established the Bretton Woods system in 1944, designating the dollar as the international standard currency, after amassing substantial wealth during World War II.
However, since then, the US has exploited its dominant position in currency issuance, utilizing the dollar as a political tool to pursue its objectives, Jong opined. He noted that the international monetary system centered on the dollar, along with military prowess, has become the bedrock of US global dominance.
The North Korean analyst went on to elaborate that over nearly a century, the US has resorted to various means and methods to uphold the supremacy of the dollar as the primary currency.
Dollar consistently maintained its grip on the international monetary system – North Korean Analyst
Starting with the gold dollar in the 1940s, followed by the oil dollar in the 1970s, and presently the debt dollar, the US has consistently maintained its grip on the international monetary system. Jong highlighted that the US has not hesitated to impose financial sanctions on nations that have defied its desires, leveraging the dollar’s dominant position. As an example, he cited the financial sanctions imposed on Russia following its intervention in Ukraine.
Jong emphasized that such actions have prompted countries worldwide, including the BRICS nations (Brazil, Russia, India, China, and South Africa) and members of the Association of Southeast Asian Nations (ASEAN), to reduce their dependence on the US dollar and adopt their national currencies for international trade. He drew attention to the fact that the BRICS group has put forth a proposal for a common currency, which is expected to be a subject of discussion at their upcoming leaders’ summit.
The North Korean analyst further argued that the growing trend of de-dollarization is a clear indication that the US, through its assertive and arbitrary actions in pursuit of global dominance, has unwittingly accelerated efforts to abandon the dollar. This has resulted in the emergence of a new monetary system and has enticed numerous countries to join the BRICS bloc. He emphasized that the sanctions and pressures wielded by the US are now boomeranging and undermining its own position.
Highlighting a recent meeting of foreign ministers from BRICS member states, Jong pointed out that they collectively agreed to promote the use of national currencies for trade settlement among member nations and allies. Describing the BRICS economic bloc as an entity steadily bolstering its political influence on the global stage, the analyst underscored that it poses a challenge to the existing international order and financial system led by the US and the West. In conclusion, Jong stated:
“The unprecedented international movements to curtail the use of the dollar and the inclination of numerous nations to join BRICS are hastening the demise of the dollar as a pivotal currency and, subsequently, the decline of US hegemony.”
By shedding light on the ramifications of de-dollarization and the growing interest in the BRICS bloc, the analysis offers valuable insights into the shifting by shedding light on the ramifications of de-dollarization and the growing interest in the BRICS bloc, the analysis offers valuable insights into the shifting dynamics of the global economic landscape.
As countries increasingly seek alternatives to the dollar-dominated system, the decline of the USD as the world’s dominant currency appears to be gaining momentum. The implications of this trend extend beyond mere economic considerations, as it challenges the established international order and poses a significant geopolitical challenge to the hegemony of the United States and the West.
The stage is set for a transformative period in global finance, where the emergence of new monetary systems and alliances will redefine the balance of power on a global scale.
