In the world of global finance and geopolitics, currency dominance is rarely a matter of economics alone – they are built on resources, influence and control.
After the US severed the link between the dollar and gold in 1971 (the so-called “Nixon Shock“), the American currency managed to maintain its status as the world's reserve unit thanks to the petrodollar system.
In 1974, Washington and Riyadh reached an agreement according to which all oil from Saudi Arabia, and subsequently from OPEC countries, would be traded exclusively in US dollars. This forced all countries in need of oil to hold reserves in USD – guaranteeing a steady demand for the US currency.
When Iraq challenged the dollar
In November 2000, Iraq, under Saddam Hussein, announced that it would begin selling its oil in euros under the UN's "Oil-for-Food" program. By 2003, the country had already accumulated significant reserves in the European currency.
Although the official reasons for the US invasion were different, many analysts see this move as a blow to the petrodollar system - and a potential economic catalyst for the war.
The new "energy" comes from the East
Today, in the era of electric cars, batteries and artificial intelligence, rare earth metals (REE) are taking the place of oil as a vital resource. These 17 elements - including neodymium, europium, lithium and erbium – are indispensable in the production of batteries, chips, turbines and military technology.
And control over them is almost entirely in the hands of China, which processes between 80% and 90% of the world's production. This makes Beijing the new “energy center“ of the 21st century.
2025: China tightens the golden noose
In October 2025, the Chinese Ministry of Commerce imposed new restrictions on the export of strategic rare earth metals – including holmium, erbium, thulium, europium and ytterbium.
A total of 12 of the 17 REE are already under strict export controls, and restrictions on lithium batteries and technologies used in Western industries are added to them.
These measures are a response to US and EU sanctions, but they also have a deeper purpose – to allow China to dictate not only access to resources, but also the currency in which they will be traded.
From petrodollar to “golden yuan“
With increasing control over strategic raw materials and parallel purchases of gold by the central bank, Beijing is gradually building an alternative to the dollar system.
If rare earth metals trade begins in yuan, global demand for dollars will weaken – just as it did with the introduction of the petrodollar in the 1970s.
Gold dictates the rules again
In 2025, the price of gold passed $4,000 per troy ounce – the largest increase since 1979. The reasons are a combination of geopolitical tensions, the trade war between the US and China, a weakening dollar and massive purchases of gold by central banks.
China is among the leaders in this process – diversifying its reserves, reducing its dependence on the dollar and placing gold at the heart of the future yuan.
Gold's self-fulfilling prophecy
After years of Bitcoin being the symbol of FOMO and a self-fulfilling prophecy, gold is now starting to take its place.
Psychological effect: Mass investors, having seen a rise from $2,000 to $4,000 in nine months, are starting to see gold as the “next big asset”.
Self-reinforcing mechanism: Expectations of a price increase stimulate buying, which leads to a real increase in price and confirms the initial forecasts.
Difference with Bitcoin: This time the movement is supported by central banks and countries, and not just by individual investors, which makes the effect more systemic.
Thus, FOMO is shifting from cryptocurrency to a real asset legitimized by institutions, which could accelerate the transition to a new global financial order.
Dedollarization has already begun
While the dollar still dominates, China's actions with REEs and gold show that control over strategic resources is the key to new power.
If the trend continues, gold and rare earths could make the yuan the main global currency, and the world could enter a new financial era - that of resource-based payments and a "golden yuan".