Central Bank Gold Demand Hits Record High, U.S. Petrodollar on Deathbed?

Mon Aug 28 2023

The U.S. dollar has enjoyed its position as the global currency reserve favored by central banks worldwide since the end of WWII. (“Petrodollar” refers to the global trade of oil in the U.S. dollar, which is widely accepted as the driver of dollar hegemony.) This status has underpinned American economic dominance; at one point, the dollar was almost considered as good as gold as a long-term store of value. But as I and others at PJ Media have noted, the dollar’s dominance is now on the decline. And in a hurry, relatively speaking.

Central banks around the world have apparently taken notice of the peril that investing and trading in dollars might pose to their economies in the not-so-long-term, and have accordingly made alternative investment decisions.

The Chinese would, obviously, very much welcome the widespread adoption of their own currency, the yuan, in lieu of the dollar.

Thus, for the moment, it seems physical stores of value such as gold, which are not open to manipulation by governments and the machinations of mercurial markets in the same way that fiat currencies are, will remain king for the foreseeable future.

Source: https://pjmedia.com