FIFA And Global Power
One key fact is the centrality of the American financial system to the world economy – something that in turn rests on the importance of US-based banks and the role of the dollar as the pre-eminent global reserve currency. The US has standing in the Fifa cases because allegedly corrupt transactions were made through banks based in America.
.. Could this change? Possibly. But it would probably require the Chinese currency to become a global reserve currency to rival the dollar. That is why the IMF’s decision later this year about whether to include China in the basket of currencies from which it makes up its Special Drawing Rights will be keenly watched. Such a move would be a visible step along the road to turning the renminbi into a global reserve currency. That, in turn, might ultimately threaten the dollar’s unique position in the global system – and the power that it confers on the US.
.. But if the US Department of Justice says there is a serious case to answer, it still carries global credibility. The same benefit of the doubt would not be extended to a prosecutor in Moscow or Beijing.
China is certainly closing the wealth gap with America, just as Asia is closing the gap with the west. But the reputation of American institutions for integrity remains a vital intangible asset. It is that reputation that allowed the US to tackle Fifa.