Meaning there’s no reason to abandon a stable established reserve currency that isn’t subject to capricious and arbitrary lockouts or denials. Sure, China, India, Iran, and Russia were always looking for excuses to hop off the petrodollar because owning the world’s reserve currency represents power. But there’s enormous inertia involved in such a process, which means those countries were also looking for excuses not to hop off. Using our global reserve currency status so recklessly as a geopolitical lever has now forced those competing countries’ hands.
Meaning there’s no reason to abandon a stable established reserve currency that isn’t subject to capricious and arbitrary lockouts or denials. Sure, China, India, Iran, and Russia were always looking for excuses to hop off the petrodollar because owning the world’s reserve currency represents power. But there’s enormous inertia involved in such a process, which means those countries were also looking for excuses not to hop off. Using our global reserve currency status so recklessly as a geopolitical lever has now forced those competing countries’ hands.