US MONETARY HEGEMONY IN THE WAKE OF RUSSIA'S AGGRESSION OF UKRAINE

This article questions to what extent are the conditions ripe for the decline of the US dollar as a hegemonic currency. The issue at hand has gained additional salience after the imposition of unprecedented financial sanctions against Russia after its invasion of Ukraine. Contrary to numerous commentaries predicting the erosion of US dollar, this research relies on the concept of structural power which outlines reasons for the continued US dollar hegemony atop the global monetary hierarchy. US dollar hegemony is still stable due to continued trust in the merit of US security guarantees on behalf of US formal allies and security partners. Furthermore, US dollar hegemony is also stable due to above average profitability of the US corporate sector, as well as above average US GDP growth rates relative to the rest of the world. Simultaneously, deeply institutionalised export-led growth models of surplus states create an obstacle to the internationalisation of their respective currencies. On the demand side, US dollar does not show worrying signs of vulnerability, while on the supply side there is still absence of strong and organised competitors willing to carry the burden of internationalisation.