Currently, the US government, especially under the Trump administration, is actively considering an ambitious strategy aimed at promoting the adoption of the global dollar. The aim of this initiative is to strengthen the role of the dollar in international transactions, as well as to respond to China’s efforts to reduce the dollar’s dominance. The phenomenon is seen by many as a financial war, the consequences of which will have a far-reaching impact on the global economy.
At the heart of the dollarization efforts is China’s systemic campaign to tighten the dollar in international trade. The U.S. government’s goal is to respond to this threat, so global dollarization is not just an economic move, but also a political response to China’s growing influence. The situation is further complicated by the fact that the dollar, as a world trade currency, continues to play a key role in the trade of many countries. The implementation framework for dollarization includes high-level discussions between the Ministry of Finance and other government agencies, such as the National Economic Council (NEC), the National Security Council (NSC), and the Economic Council (CEA). These discourses aim at a coordinated approach that links traditional dollarization with digital dollar policies, such as the introduction of stablecoins. The United States has identified the countries most suitable for dollarization that are in a critical economic situation. These include Argentina, which is the most important case study, but Lebanon, Pakistan, Turkey, Egypt, Venezuela and Zimbabwe are also mentioned. These countries are facing specific economic problems, such as hyperinflation, distrust of the currency, capital flight patterns, and political instability. The case of Argentina, for example, shows that much of the debt that has accumulated since 1995 has disappeared due to capital flight. An analysis of such situations reveals that dollarization is not only a political decision, but also a structural necessity in order to restore trust.
From the point of view of the US government, the introduction of dollarization involves a wide range of economic calculations. Particular attention should be paid to the dilemmas between political influence and monetary responsibility, as well as between short-term stability and long-term growth constraints. The IMF’s warnings also suggest that while dollarization can promote immediate stability, it could pose challenges for many economies in the long run. In addition, the links between reserve requirements and crisis management benefits should be taken into account, which have a fundamental impact on the economic stability of target countries. Of course, there are many criticisms of the dollarization strategy. Its opponents point out that exporting dollars to these often unprepared economies could cause structural unemployment while further strengthening the global dominance of the United States.
In conclusion, the US dollarisation strategy is not only an economic measure, but also a complex geopolitical response that could have significant implications for future global financial transactions and the economic development of target countries.
Translated and edited by Leo Albert