The G7 and a group of 3 countries known as the "Triumvirate" are locked in a struggle for influence over the international monetary system. On the one hand, the G7 countries seek to maintain the supremacy of the US dollar. On the other, Russia, China and Iran, which can be grouped under the term "Triumvirate", are working to dethrone the greenback and impose new rules on world trade.
G7 weapons to defend the dollar
Faced with the rise in power of the Triumvirate, the G7 has a number of assets at its disposal to defend the dollar's position. First and foremost, the dollar remains the reference currency for international trade and finance. The G7 countries can also rely on the financial institutions they control, such as the IMF and the World Bank, to sanction recalcitrant countries.
What's more, the G7 has the advantage of a deep and liquid financial system, which reassures investors. The Triumvirate countries still struggle to offer a credible alternative to the dollar. Finally, the G7 can count on the support of many developing countries which, despite their criticisms, remain dependent on the dollar-dominated financial system.
The Triumvirate's weapons to dethrone the dollar
To dethrone the dollar, the Triumvirate is counting on several levers. Firstly, Russia and Iran, under Western sanctions, are seeking to do without the dollar in their trade. They are relying in particular on the Russian SPFS payment system and the BRICS single currency, currently under development.
China, for its part, is actively promoting the internationalization of the yuan. It has signed swap agreements with numerous countries and is encouraging the use of the yuan in international trade. In this way, Beijing hopes to gradually undermine the dollar's dominance. The Triumvirate is also banking on the creation of new alternative financial institutions, such as the Asian Infrastructure Investment Bank (AIIB) and the New Partnership for Africa's Development (NEPAD).
