The COVID-19 pandemic has very badly affected the global economy and economists predict that world economy will go into recession. According to economic experts from different parts of the world the forthcoming recession will pave the way for Global Currency Reset (GCR). Currently, the US Dollar is the reserve currency of the world and if there will be a Global Currency Reset, the US Dollar will be replaced by a new currency as the reserve currency of the world and a new monetary system will be introduced. USD is now the world’s reserve currency because it is backed by the world’s largest economy. The Euro comes only next to USD. Now the question before us is whether there will be a Global Currency Reset in the near future? China is very eager to have more control over the economy and tries to replace USD with its currency Yuan as the global currency. However, according to the exact definition of Global Currency Reset, it means going back to the global currency system which would be agreed by all the nations.
What happened in 1944 and after that in 1971?
The global monetary system which prevails today came into existence in the year 1944 and the allies of the World War II were behind the Global Currency Reset at that time. They sat together and took the decision to get rid of the gold standard and introduced the USD as the currency of the world. This is known as the Bretton Woods Agreement. The IMF and the World Bank were established following the agreement and were entrusted with the task of monitoring the new global monetary system. Though at that time the nations agreed on a fixed currency rate, in the year 1971, the American Government stopped the support to USD with gold. Consequently, dollar and other currencies of the world remained without support from an asset like gold.
Will USD cease to be the global currency?
After the severe financial crisis of 2008, financial experts started giving indications of the next Global Currency Reset and predicted a collapse of the present financial system. The next Global Currency Reset will be the process in which the US Dollar will permanently lose its place as the global currency. Gold or some other instrument will be made as the new standard after the GCR. As a result of GCR, gold prices will shoot up. This is mainly because people will start taking advantage of the financial stability assured by gold. On completion of the GCR process, world economy will be based on the newly introduced monetary system and as a result the economy will start recovering.
Process already initiated by Russia and China
Russian President Vladimir Putin accused the US of taking undue advantage of the position of US Dollar as the global currency and he wanted to remove USD as the global currency. China and Russia have already reduced use of USD in their bilateral trade. Consequently, dollar payments for the exports from Russia to China in the first quarter of 2019 fell down steeply from 75.1% during the same period in 2018 to 45.7%.