💸 The birth of the Euro changed the international monetary order, placing the Euro alongside the dollar as a payment and international reserve currency.

In the immediate post-war period, the dollar was joined by the pound; the importance of the currency of Great Britain is derived from the past, it has seen the role it once played gradually decline, with the disappearance of the empire and a series of anti-historical sovereign options in the country.

Today the world’s central banks are witnessing a decrease of the share of dollars in their reserves, while the euro and gold increase. The latter testifies to a situation of uncertainty.

The euro partially rebalanced the international monetary order, but did not call into question its fundamental characteristics.

The international monetary order began to be questioned when the Russian Federation and China, thanks to their own development, found themselves in a position to aspire to give their currency an international role. The international role of the Chinese currency is the natural effect of the country's economic development, which has become the world’s third largest economic power, surpassed only by the United States and the European Union. In turn, the role of the ruble at the international level can be supported by the ability of the Russian Federation to export strategic raw materials, primarily in the energy sector.

The possibility of creating a democratic monetary order as part of the European experience was greeted with scepticism at the time of the creation of the European Monetary Union. An equal scepticism is bound to welcome the project to establish a new international monetary order. The most dangerous alternative is to surrender to sovereignty and to war to resolve the tensions between the most powerful states and their vassals: monetary, financial and political disorder, writes Valdai Club expert Dario Velo.

https://valdaiclub.com/a/highlights/a-democratic-monetary-order/

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