Universal Journal of Accounting and Finance Vol. 9(4), pp. 885 - 893
DOI: 10.13189/ujaf.2021.090434
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US Policy on Dollarization of the World Economy


Chuvakhina L. , Nasirbeik A. *, Ivanovskaya
Department of World Economy and International Business, Financial University under the Government of the Russian Federation, 49, Leningradsky avenue, Moscow, 125993, Russia

ABSTRACT

In its essence and content, dollarization is one of the keys and most significant phenomena of modern dynamically developing international monetary and financial relations. There are different theoretical approaches to determining the economic essence and content of the complex and contradictory phenomenon of dollarization. Different scientists have investigated the monetary nature of this phenomenon and have given a comparison of the concepts of official and partial dollarization, based on the degree of economic coverage of dollarization. In this research the process of official dollarization is considered on the example of Eurasian Economic Union (EAEU) member states. The paper examines the scale of financial dollarization in the EAEU member states, where, due to the loss of residents' confidence in the monetary policy and the national monetary unit, the functions of the national currency are partially replaced by the US dollar. Furthermore, the role of the US Federal Reserve in the implementation of dollarization of the foreign economies is analyzed. The article substantiates the intention of the US Federal Reserve to take steps to dollarize the foreign countries' economy in the context of the started process of de-dollarization of the world economy. The most active supporters of de-dollarization are Russia, China, and Iran. Their efforts are aimed at weakening the dominant position of the dollar as a key reserve currency, the currency of international settlements. In the current condition of the world economic development, it is unlikely to expect a weakening of the position of the US dollar, given the role of the US dollar in the trade of oil and petroleum products. The petrodollar system is the basis of the US dominance in the global financial system and the key to the stability of the US dollar. As a result, countries are forced to buy dollars in order to be able to purchase oil on the open market. While the demand for the US dollar will remain at a high level, it is not necessary to talk about the success of de-dollarization and the transition from an American-centered monetary and financial system to a polycentric one in the near future.

KEYWORDS
Dollarization, Federal Reserve, EAEU, De-dollarization

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Chuvakhina L. , Nasirbeik A. , Ivanovskaya , "US Policy on Dollarization of the World Economy," Universal Journal of Accounting and Finance, Vol. 9, No. 4, pp. 885 - 893, 2021. DOI: 10.13189/ujaf.2021.090434.

(b). APA Format:
Chuvakhina L. , Nasirbeik A. , Ivanovskaya (2021). US Policy on Dollarization of the World Economy. Universal Journal of Accounting and Finance, 9(4), 885 - 893. DOI: 10.13189/ujaf.2021.090434.