Evgeny Goryunov, Head of Monetary Policy Department at the Gaidar Institute, assessed the reasons for the decline in the role of the dollar in world trade and pointed to internal political risks for the US currency in a commentary for Vzglyad.
The expert noted that despite the dollar's historically low share in SWIFT transactions, its position remains dominant. At the same time, the growth in the yuan's influence is still comparable to the role of other secondary currencies: “the yuan's position roughly corresponds to that of the Canadian or Australian dollar and the Swiss franc.”
The expert sees the main threat to the dollar not in direct competition, but in US domestic politics. "The dollar is still strong and trusted, but of course, we should not underestimate the eccentricity of the American president, who is doing a lot to undermine confidence in the US currency. The fact that the US Department of Justice is investigating Fed Chairman Jerome Powell is a very bad sign. Such crude attempts by Trump to put pressure on the monetary authorities are undermining the dollar's position," Evgeny Goryunov stressed.