The sanctions placed on various countries over the years, particularly Russia, have led to a drop in demand for the dollar and a corresponding drop in its value. As a result, countries such as China, Russia, Iran, North Korea, and Saudi Arabia are forming alliances and looking to limit the use of the dollar in favor of their own currencies or a standardized currency they can all agree on. This move is being driven by the desire to have bankable value and reduce the dominance of the dollar as the world's reserve currency.
The US dollar has always been in demand due to its status as the reserve currency of the world and its use in the petro trade. However, recent estimates suggest that only 15-17% of petro sales are done in foreign currencies, causing a drop in the demand for the dollar. China has made a multi-year cooperation agreement with 36 countries to challenge the US in economic and military supremacy, and has stated its desire to debase the dollar as the reserve currency and promote the use of the yuan. As a result, banks are experiencing runs, and gold is being used as a hedge against devaluation of currencies.
