Prabir Purkayastha in CounterPunch:
Do the Ukraine war and the action of the United States, the EU and the UK spell the end of the dollar as the world’s reserve currency? Even with the peace talks recently held in Turkey or the proposed 15-point peace plan, as the Financial Times had reported earlier, the fallout for the dollar still remains. For the first time, Russia, a major nuclear power and economy, was treated as a vassal state, with the United States, the EU and the UK seizing its $300 billion foreign exchange reserves. Where does this leave other countries, who also hold their foreign exchange reserves largely in dollars or euros?
The threat to the dollar hegemony is only one part of the fallout. The complex supply chains, built on the premise of a stable trading regime of the World Trade Organization principles, are also threatening to unravel. The United States is discovering that Russia is not simply a petrostate as they thought but that it also supplies many of the critical materials that the U.S. needs for several industries as well as its military. This is apart from the fact that Russia is also a major supplier of wheat and fertilizers.
More here.