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Russia's foreign minister suggested that the U.S. dollar could lose its status as the world's leading currency. He said that because the U.S. has put sanctions on Iran, Turkey and Russia, these countries could start doing business in their own currencies instead of the dollar. Countries that have had trade tariffs imposed on them by the U.S. could also do trade in their own currencies. This could include the economic superpower China not using the dollar. China is already doing trade deals in its own currency. Experts say the dollar could lose its role as the international reserve currency.
The U.S. dollar became the international reserve currency in the 1920s. Most international trade now takes place using it. If China buys oil from Iran, it pays in dollars. This means billions of dollars flow out of the USA. This gives the USA a currency deficit as its dollars are in other countries. Russia's foreign minister said: "I'm confident that the grave abuse of the role of the U.S. dollar as a global reserve currency will result...in the...demise of its role." China's currency the yuan is emerging as a new trading currency. Africa's most populous nation Nigeria has already started using it.
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