"The de-dollarization process has begun"
Europe is burdened in debt, and it will turn into a middle-class country economy, Alexey Mozhin commented for "RIA Novosti".
Source: RT
The United States of America itself is to blame for the fact that many countries began to give up trade in US dollars, Alexei Mozhin, Russia's representative at the International Monetary Fund, told "RIA Novosti".
"The Americans themselves created a situation that inevitably led to the search for an alternative to the dollar," Mozhin said.
Today, other currencies are increasingly used, especially the Chinese yuan.
"We see that the Iranians, Brazilians, and Saudis are already switching to trading in yuan not only with China but also with third countries," explained Mozhin.
That is why, as he said, Americans are already worried about the fate of the dollar, and the move away from that currency is happening quite quickly.
"The process (of de-dollarization) has already begun," he concluded.
According to Mozhin, the main importance of the dollar until now was that there was no alternative to that currency in the world, referring to the fact that the American currency was used as the main means of payment, which, he added, was completely wrong because the dollar was printed to fulfill the interests of the USA, although that was not the only factor.
"American military power is also important, it protects the currency. The size of the American economy and the financial sector are also important factors, but the main thing is that there is no alternative," said Mozhin.
De-globalization will continue
Mozhin also stated that the process of de-globalization, which means, the diversification of economies in countries all over the world, will continue because everyone has seen from the example of Russia that the import of key products should never be allowed to depend on a third party. As he said, the sanctions against Moscow led to this.
"The fact that the West uses international trade, finance, and currencies such as the dollar and the euro as a weapon leads to the fragmentation of the world economy is not only inevitable but also irreversible. We have learned our lesson, we will never allow ourselves to be so dependent on imports, even when they become a strategic sector of the economy. The whole world unexpectedly saw through the situation," said Mozhin.
Mozhin also warns that many Western countries are heavily in debt, especially when it comes to Europe:
"Great Britain, France, Spain, Portugal, not to forget Greece and Italy," Mozhin said.
Nevertheless, his estimates say that these countries will have a hard time dealing with it because "the political system of those countries means that they are completely focused on short-term indicators".
"Europe will turn into a middle-class country economy," Mozhin said.
