President Vladimir Putin is skillfully exploiting the “hegemon’s dilemma”—the United States’ deep-seated fear of a declining dollar. His explicit confirmation that Russia-China trade has ditched the dollar is a calculated move to amplify anxiety in Washington and showcase US vulnerability.
By noting that the dollar’s dominance was a major concern for the Trump administration, Putin shows he is keenly aware of this American pressure point. He is not just conducting trade in other currencies; he is publicly celebrating it as a blow against the “hegemony of the US dollar.”
This strategy turns America’s greatest strength, its currency’s global role, into a potential weakness. Every major transaction that bypasses the dollar slightly erodes the foundation of US financial power and its ability to impose effective sanctions.
At the SCO summit, Putin will present this de-dollarization strategy as a viable and proven tool for liberation from US influence. He is demonstrating to other countries that the hegemon can be challenged, and its primary tool of power can be blunted through collective action.