Igor Sechin, the CEO of Rosneft, recently stated that gold could potentially challenge the U.S. dollar as the dominant global trade currency. During his speech at the Eurasian Economic Forum in Verona, Sechin criticized the use of the dollar as a tool for imposing sanctions, arguing that trade will continue to thrive and alternative currencies will be found. He highlighted that gold, which has been used for centuries for international transactions, could become a primary competitor to the dollar.
Sechin further criticized the United States for losing its leadership in science, industry, and finance, noting that its attempts to maintain a favorable global economic order have led to instability. He suggested that the U.S. has sparked various conflicts in a bid to secure advantages for its economy, often at the expense of other countries.
The dollar’s dominance in international foreign currency reserves has been steadily declining. Since 2001, its share has dropped from 71% to 58%, while gold’s role as a protective asset has been growing. Over the past decade, many central banks, especially in developing nations, have increasingly turned to gold as a way to hedge against global uncertainties and a loss of confidence in the dollar.
Sechin’s comments reflect a broader trend among global leaders and economists advocating for greater diversification in global financial systems. The rising interest in gold and other national currencies underscores a shift away from dollar dependency in international trade.
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