STORY: U.S. uses dollar as political weapon against other countries, Cuban expert says
DATELINE: Oct. 20, 2023
LENGTH: 00:03:27
LOCATION: HAVANA
CATEGORY: POLITICS/ECONOMY

SHOTLIST:
1. various of the expert reading books
2. SOUNDBITE 1 (Spanish): LUIS RENE FERNANDEZ TABIO, Researcher at the Center for Research on International Economy
3. various of the U.S.
4. SOUNDBITE 2 (Spanish): LUIS RENE FERNANDEZ TABIO, Researcher at the Center for Research on International Economy
5. various of the expert talking
6. various of the U.S.
7. various of the expert

STORYLINE:

The United States uses the dollar as a political weapon against other countries based on its interests, Cuban researcher Luis Rene Fernandez Tabio said in a recent interview.

The 70-year-old academic, who has been studying and analyzing the U.S. economy for several decades, clarified that although the dollar has lost some of its share in the international economy, it still remains the primary currency of the global monetary and financial system.

SOUNDBITE 1 (Spanish): LUIS RENE FERNANDEZ TABIO, Researcher at the Center for Research on the International Economy
"The use of the dollar as a weapon against other countries, not motivated by economic issues, I mean, it's not driven by economic situations or economic policies in and of themselves, not driven by economic interests, but with the objective of harming other countries, concerns many countries, especially medium and large powers, grouped organizations like the BRICS. The BRICS, now in its expanded form since the South Africa Summit, are concerned."

Fernandez explained that this restrictive monetary policy increases the interest rates of the U.S. Federal Reserve system with the purpose of curbing rising inflation which is caused by internal sources such as macroeconomic and fiscal imbalances due to the "substantial" government financing during the pandemic.

He noted that, along with other federal budget expenditures, this has led to a "massive fiscal deficit and a record debt" relative to its GDP, contributing to inflation growth since mid-2022.

SOUNDBITE 2 (Spanish): LUIS RENE FERNANDEZ TABIO, Researcher at the Center for Research on International Economy
"It's a very complex, very difficult situation. And the reason is that even though there has been a decline in the role of the dollar in various functions of money in the international monetary system, there is also a decreasing process, which doesn't mean that the dollar will lose its significance tomorrow, but it's certainly decreasing. This is due to the increasing use by the United States government of economic instruments of power for strategic and political purposes, not for economic purposes."

The expert believed that all these factors would lead to a decline, stagnation, or even a more severe economic and financial crisis than the 2008 financial crisis in the United States during this crucial year of the electoral cycle, instead of the expected "soft landing" of the economy.

To the economist and professor at the University of Havana, many countries are currently trying to minimize their dependence on the dollar to reduce their vulnerabilities and avoid being subjected to economic coercive measures by the United States, but achieving this goal is "very complex."

Xinhua News Agency correspondents reporting from Havana.
(XHTV)