Ronny P. Sasmita
The role of the US dollar will still be quite significant in the future, even though several countries and trading blocs are starting to abandon it as a means of payment for exports and imports (cross border payments). As this process continues to play out, the dominance of the dollar as a means of payment will certainly decrease; however, the role of the dollar as a “medium of exchange,” “unit of account,” and “store of value” will continue to dominate for quite a long time.
This is due to the fact that the US dollar will still be used as a means of payment for trade in many regions, mainly because of the practicality of the abundance of dollar liquidity on the one hand and the dollar’s role as an “anchor” of global trade on the other.
In other words, the US dollar will still be used in many locations as the unit of account that has been recognized for more than 70 years, and as a hedging instrument considered to be stable ever since the dollar was separated from gold in 1971 by Richard Nixon, ending the Bretton Wood era. The difficulties of de-dollarization are compounded by the technical difficulties inherent in calculating value, difficulties that have long been avoided by weighing such calculations against the dollar.
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