EDITOR NOTE: Based on the latest SWIFT transaction records--that’s the communication system that allows institutions to send international payments among other things--the Euro has been the most actively utilized currency. It comes at the wake of a huge Eastern Bloc trade deal, where one analyst questioned why its members should use dollars when other currencies, especially the Chinese yuan, will suffice. The writing has been on the wall for years, as we’ve covered this topic extensively, warning our readers when such a scenario was a mere whisper. The dollar’s hegemony is falling. And the more it falls, the weaker your dollars become. Yet all of the currencies taking its place have another thing in common: like the dollar, they’ve been falling against gold, but not as badly as the dollar’s rate of decline.
The euro became the top currency for global payment transactions last month, having outpaced the US dollar for the first time since 2013, data from SWIFT showed.
RT’s Boom Bust is joined by Michael Pento, the founder and president of Pento Portfolio Strategies, to find out if that means the start of the de-dollarization process.
The Eastern Bloc nations just signed a huge trade pact, Pento says, adding that he doesn’t see “why would there be any sense for them to do that trade conducted in dollars when they can use the Chinese yuan, the Japanese yen or even the euro.”
It just doesn’t make any sense, he says, “Dollar hegemony, by the way, has been losing footing for many years and now this has started to accelerate.”
Originally posted on RT.com