In particular, we are talking about countries such as Nigeria, South Africa, Ghana, Senegal, Cameroon, Algeria, Egypt and Saudi Arabia, each representing the most important regions of Africa and the Middle East. Their moves to withdraw reserves raise questions about the future of the US dollar as the world’s main reserve currency, the paper notes.
“This trend marks a significant shift in global economic dynamics and highlights growing skepticism among countries about the traditional safe-haven status of the US dollar and US financial institutions. The decision to repatriate gold reserves is not only symbolic. This reflects deeper concerns in these countries about the trajectory of the US economy,” the article says.
Confidence in the dollar has been undermined by persistent inflation, rising levels of US government debt and concerns about the Federal Reserve’s ability to maintain a stable monetary policy. Geopolitical tension and uncertainty surrounding trade relations also had an impact.
E.g. Nigeria, Africa’s largest economy, decided earlier this year to repatriate gold reserves held in the United States. Saudi Arabia’s decision to withdraw its gold from the US sent shockwaves through global markets. Egypt and South Africa, two other major economies, have taken steps to withdraw their respective stockpiles. – reviewed by the Houston Post.
The withdrawal of gold reserves from the United States by countries in Africa and the Middle East represents a shift in international finance. It reflects a loss of confidence in the traditional pillars of the global economic order and highlights the need for diversification and risk management strategies. As these countries assert greater control over their financial assets, the balance of power in the global economy is poised for a major recalibration with far-reaching implications for the future of international finance.
(Selected and translated by -jur-)
Tags: Pulling gold undermines dollar
