China's de-dollarization policy and its impact on the hegemony of the US dollar

Document Type : Original

Authors

1 Department of International Relations, Faculty of Humanities, Tarbiat Modares University, Tehran, Iran.

2 Department of International Relations, Faculty of Economics and Political Science, Shahid Beheshti University, Tehran, Iran.

Abstract

The international role of the dollar in the global economy remains dominant. Nonetheless, there is a belief that various factors, including geopolitical changes, technological advancements, and China's increasing role as an emerging power, may challenge the hegemony of the American dollar as a dominant force. China has implemented a range of significant and diverse policies in pursuit of de-dollarization to weaken one of the key pillars of American power. In this research, we employ an analytical-explanatory method and draw upon written and online sources, as well as data from financial and banking institutions, to address the fundamental question: What actions has China taken in pursuit of de-dollarization, and to what extent have they been effective? The hypothesis proposed suggests that considering the dollar's control over the financial structure and the international payment system, as well as the world's countries dependence, including China's, on the existing financial and monetary structure, dollar hegemony has persisted despite China's confrontational policies and has not encountered significant challenges thus far. The research findings suggest that while China's de-dollarization policy is acknowledged as a potential threat to dollar hegemony, it has not succeeded in challenging the dominance of the American currency, and it appears that the dollar-based system will continue predictably into the future.

Keywords

Main Subjects

حوزة موضوعی: بریکس

Scope: BRICS

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Journal of Countries Studies
Volume 2, Issue 2
Special issue of BRICS
2024
Pages 189-220

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History

  • Receive Date: 07 November 2023
  • Revise Date: 20 November 2023
  • Accept Date: 30 November 2023

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