Panetta's statement, which fell like a “bomb,” stressed that the global monetary system is gradually entering a phase of de-dollarization.
He noted that this does not mean the collapse of the dollar or its rapid disappearance from international settlements, according to a Bloomberg report.
However, the structural changes that have been building for years increasingly point to the emergence of a new, multipolar architecture, where several currencies will be used equally for global transactions and value storage.
The dollar under question
Already today, we see a weakening of the traditional factors that for decades ensured the unquestioned dominance of the American currency.
The growth of major economies, the rise of alternative financial hubs, the strengthening of regional integration and the changing nature of global trade mean that the dollar is no longer the sole anchor guiding the direction of global capital flows.
What seemed unthinkable just twenty years ago is now part of strategic discussions at central-bank level.
Statements from such a high-ranking European regulator reflect not only expert opinion but also the real expectations of Western financial institutions regarding the future transformation of the international monetary order.
When changes will arrive
The key condition for these changes is the diversification of global reserves.
Countries dependent on dollar liquidity and forced to account for the specifics of U.S. monetary policy increasingly seek to reduce their vulnerability.
Transitioning to a multi-currency model allows states to balance their financial flows, mitigate external political risks and ensure the sustainability of national development strategies.
Panetta describes this approach as natural and long-term: structural forces act slowly but inevitably.
The advantages
From an economic standpoint, de-dollarization offers several fundamental advantages.
When one country controls a currency that serves the entire world, imbalances arise: Federal Reserve policies inevitably affect economic conditions in dozens of countries whose macroeconomic cycles may differ significantly from those of the United States.
A multipolar system disperses this influence and reduces the likelihood of global shocks caused by interest-rate changes or quantitative-easing programs.
Interest in alternative currencies is rising both among developing nations and major economies in Europe and Asia.
Even if the euro and the yuan do not yet possess all the characteristics of fully developed global reserve currencies, their potential is increasing: capital markets are expanding and deepening, the volume of international settlements is growing, and political and financial integration is strengthening.
The reasons for de-dollarization
De-dollarization appears economically justified. The world is undergoing a structural transition in which excessive concentration of global functions in a single currency creates disproportionate risks.
By contrast, a multi-currency model spreads these risks and promotes stability in global capital flows.
This approach does not conflict with U.S. interests but does require adaptation from global financial institutions.
In the end, everyone benefits. Countries gain greater autonomy in macroeconomic policy, businesses gain more flexible payment terms and reduced exchange-rate volatility, and the global system becomes more resilient to external shocks.
The transition to a new international financial system will not be quick.
It is a process that will take years, but its direction can no longer be ignored.
New blocs are emerging
The development of regional monetary blocs, the expansion of settlements in national currencies and technological change — including central-bank digital currencies — are creating the conditions for a qualitatively new balance.
It is precisely here that the future shape of the global economy may prove more sustainable, fairer and more aligned with multilateral coordination.
www.bankingnews.gr
Σχόλια αναγνωστών