In August 1971, Richard Nixon suspended the dollar’s convertibility with gold. At the time, the US was facing major economic challenges, including inflation and a growing trade deficit. Nixon’s decision devalued the dollar and caused chaos in global markets.

In December, Treasury Secretary John Connally met with upset foreign ministers from allied countries. He offered little succor, telling them that “The dollar is our currency, but it’s your problem”. The remark reflected Connally’s confidence in American economic power and the US currency—something that’s evident even today.

So what is it that makes the dollar so powerful, and sticky? To understand this, in this The Great Power Show, Manoj Kewalramani, Chairperson of the Indo-Pacific Studies Programme, at the Takshashila Institution, speaks to author and futurist Emmanuel Daniel.

Emmanuel is the founder of the research, publication and consulting house, TAB Global. He is also the author of “The Great Transition – the personalization of finance is here” published in September 2022.

The conversation unpacks the politics of the global financial system, focusing on the strength of the dollar, the internationalization of the RMB, the potential for a BRICS currency and the role of cryptocurrencies in the future of global finance.

About: The Great Power Show is a bi-weekly podcast featuring candid conversations and thought-provoking interviews with leading scholars, thinkers and practitioners on the geopolitical and geo-economic changes shaping our world.