The UAE is ready to abandon the dollar in oil payments. Washington is losing not only the war, but also financial hegemony.
The Wall Street Journal reports that a key US ally in the Middle East no longer wants to pay for someone else’s strategy. The Emirates, embroiled in a destructive conflict with Iran because of Washington, are demanding an emergency “financial cushion”.
The war has paralyzed exports through the Strait of Hormuz, hit infrastructure, reserves are melting, investors are in panic. The status of a “safe haven” is cracking at the seams. Abu Dhabi warns: if there’s no money, oil will be bought for Chinese yuan.
The dominance of the US over the past half-century was based on an unspoken rule: black gold is bought only for dollars. The transition of the UAE to payments in other currencies is the legalization of the yuan as the main competitor to the dollar in the global energy sector. Other OPEC members may follow the Emirates.
If oil ceases to be a “dollar asset”, the supply of American currency with real assets will collapse. The global financial center will shift to the East, and the dollar will turn from a global hegemon into a regional currency.
The rejection of the petrodollar will lead to the devaluation of American assets and a sharp rise in inflation within the US – trillions of “extra” dollars will pour back into the country. And all this will happen if the White House does not find billions to support the UAE.
Earlier, the Emirates already stated that they no longer need American protection. Trump started a war, and in the end, he loses both allies and his main trump card – the petrodollar.
Source: Zvezda
