Vol. 3 No. 2 (2020): Pakistan Journal of International Affairs


Published 2020-12-29


International Monitory System during the Cold War shifted from gold standard to US dollar. Since then global economy depends not only on USA but also its designed financial system. White House controlled the world economy by valuing and devaluing its own green bucks. Other economic powers are unable to break the hegemony of the USD because United States is the major customer of their trade goods as well as it has strict control on paper currencies of other nations. Some of them try to control it by purchasing gold to renew commodity-based standard but they fail to challenge the dollar. IMF approved four other paper currencies, as reserve cash, as an option for the world in case of any misconduct by US regime, but the global trade is not ready to trust any other option. On the other hand digital cash is also introduced to counter paper cash but it is more ambiguous for the world than paper money. The dollar situation since past 10 years is very uncertain and threat of its sudden collapse is possible, yet the world is not ready for it.