Former President Donald Trump has raised concerns that the United States is losing its global influence as countries increasingly move away from using the dollar.
De-Dollarization Threatens US Power
In a recent interview, Trump argued that tariffs give the US an advantage over other nations. However, he warned that the growing trend of de-dollarization, or the reduction of reliance on the US dollar in international trade, is undermining this advantage.
“We are losing power,” Trump said. “We are losing a lot of countries on the dollar. They are going like flies.”
Countries Moving Away from Dollar
Trump cited several countries that have either abandoned the dollar or are exploring alternative currencies, including Russia, Ukraine, China, Iran, and Saudi Arabia.
“This is a tragedy,” Trump said. “This is a big thing that’s happening against our country and we cannot let that happen.”
De-Dollarization Trend Gains Momentum
In recent months, reports have emerged of Russia and Islamic nations discussing the creation of an independent financial system to reduce their dependence on the dollar. Additionally, major banks like JPMorgan have warned that the trend of de-dollarization is accelerating as central banks around the world sell off their US dollar holdings.
Trump believes that losing the dollar’s dominance would be equivalent to losing a war and would relegate the US to third-world status. He urged action to prevent this from happening.
