The dollar's monopoly was notably challenged by Saudi Arabia, which removed itself from the US's sphere of influence to that of China and Russia. Consequently, peace has broken out throughout the Arab lands.

But rising interest rates have destabilised western banking systems, which have added to the attractions of payment in China's renminbi relative to maintaining bank deposits and investments in the currencies of the western alliance — particularly of the dollar. Foreigners hold $7 trillion of deposits and short-term bills and $24.5 trillion in bonds and equities. These balances are becoming surplus to their needs.

The outlook is for US bank credit to contract further, which will drive interest rates even higher. More banks can be expected to fail. Foreigners are bound to become increasingly reluctant to hold dollars, which they will sell. Therefore, the question now is not how much will the dollar decline, but how rapidly.