Loading...
Iran's Strait Blockade Fuels Dollar's Decline
John Smith
Host
Ali Akbar
Guest
On April 2nd, Iran's blockade of the Strait of Hormuz is spiking oil and natural gas prices
worldwide, fueling inflation everywhere and sparking A. Push to ditch the US dollar as
the go-to global currency.
After World War II, the dollar became the world's reserve, with nearly 60 percent of global
reserves held in it thanks to America's stable economy.
And smart governance vibes.
That status lets the US hit enemies with sanctions, like cutting off Russia's banks from the
Swift network after the Ukraine invasion, making trade A, nightmare unless you pay and cash
nobody wants.
Russia teamed up with China on their own systems, SPFS and CIPS, to trade in rubles and
yuan, dodging dollar drama, now Brazil, India, and South Africa.
Are linking up too.
Iran's move adds fuel, pushing Asian buyers, where most oil heads to pay in yuan and
snack Chinese goods instead, eroding dollar demand and US leverage.
Over time, which could mean higher borrowing costs and tougher budgets here at home.
UK News Today | 2 Min News | The Daily News Now!