US dollar losing its attraction and global status

The Russia-Ukraine conflict, apart from causing energy and food crises, has also triggered the largest de-dollarization wave since the 2008 global financial crisis. And although Russia is leading the de-dollarization drive to offset the effects of the US-led West's financial sanctions against Russia, many other countries have also intensified their de-dollarization efforts due to growing concerns over the dollar's weaponization by the United States.

That the US Federal Reserve raised its benchmark interest rate by 75 basis points on Sept 21 — the fifth rate hike and the third by 75 basis points this year — without thinking about its consequences on other countries is yet another proof the US is using its currency as a weapon. With the Fed once again aggressively hiking rates, developing economies risk "losing a decade" just as Latin American countries did after being forced into a debt crisis by the US' drastic rate hikes in the late 1970s.

Due to the rise of China and other emerging economies, as well as the growth of the European Union and the fast-changing international situation, the US is finding it difficult to maintain its status as world leader. And even the once dependable US economy has been foundering, reducing the importance of the dollar.