Geopolitical Economy Hour: Dedollarization and the War On Iran

The illegal, criminal US-Israeli war on Iran is now almost three weeks old. There are new twists and turns by the hour. However, some things are clear. The US and Israel are not winning, Trump is desperately looking for an off ramp and even the most delusional one is not available to him given that it is not up to the US-Israeli side to end the war, only up to Iran, which is willing to fight for months, even a year, and is seeking nothing less than the exit of the US from the middle eastern region, ending a more than century long engagement. Meanwhile, the war has already had significant economic and financial effects The price of oil and gas have risenSo have prices of associated products, like fertilizerInflation and food inflation are rising.Expected cuts to interest rates are now on hold and may even turn into hikesStock markets are falling on expectations of a recessionand dollar denominated asset markets, vulnerable to higher interest rates could soon be tottering on the brink of collapse While there is a lot of commentary on all this, there is hardly any discussion of that the war on Iran means for the dollar system and to the prospects of de-dollarization? In this Geopolitical Economy Hour, Radhika Desai discusses the ins and outs of this question with Paulo Nogueira Batista Jr, who has served, inter alia, with the IMF, the New Development Bank and the Brazilian government.