Dollar hegemony may be numbered, says agency.

Sputnik - The era of the dollar as a universal means of payment seems to be coming to an end. Many countries are trying to become independent from the hegemony dictated by the Americans, writes the Russian portal Vesti Finance.
Recently, the Asian giant, backed by Russia, has begun taking decisive steps toward creating a viable alternative to the US dollar in the realm of trade and finance.

Specifically, China announced its intention to launch yuan-denominated oil futures contracts with the possibility of conversion into gold. Futures contracts are agreements that obligate parties to buy or sell an asset at a fixed price and to be delivered at a predetermined future date.

These plans from Beijing came as no surprise either on Wall Street or in Washington, believes American economist Frederick William Engdahl.
Today, the Asian giant is the world's largest importer of oil. Because these commercial operations are carried out in dollars, those who support the US currency fear that the introduction of a good alternative could deprive them of all the advantages offered by buying and selling.

According to the Russian portal Vesti, the launch of yuan-denominated oil futures contracts could become an alternative in Asia. If this happens, the dollar "would be another powerful instrument of manipulation [...] that China and its oil partners, including Russia, could eliminate."

This move by Beijing could lead many countries in the Middle East to opt for yuan-denominated futures contracts instead of buying oil in dollars.

Indeed, Russia's position regarding the global dominance of the dollar is quite clear, and Russian President Vladimir Putin reaffirmed it on September 5th during the BRICS summit in Xiamen, China.

"Russia shares the concern of the BRICS countries regarding the injustice that prevails in the global financial and economic architecture, which does not take into account the growing influence of countries with developing markets. We are ready to work with our partners to prevent the dominance of a limited number of currencies," declared Vladimir Putin.

However, Russia and other BRICS countries are not the only ones supporting the measure proposed by China. Venezuela also wants to get rid of the dollar.

Recently, this Latin American country officially stopped receiving and sending payments in dollars for transactions related to the sale of crude oil.

This was the first step taken towards independence from the dollar. Venezuelan oil traders began converting their invoices into euros, while Venezuelan media reported that the Bolivarian country had also begun paying for crude oil in yuan.
"The steps taken by Venezuela demonstrate a growing weakness on the part of the US. Previously, it was considered that a country that did not want to buy dollars would have to wait for regime changes in the short term. Now the situation has changed," reinforces the Russian portal Vesti Finance.