And the list just keeps on growing. Allowing BRICS to gain traction. This time it's a major oil producer...
BRICS: Another country has officially ditched the US dollar for crude oil transactions and will accept digital currencies instead.
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De-dollarization: A Growing Trend
Based on the information from various sources, it is
true that many countries are moving towards de-dollarization. This trend is driven by several factors, including economic and geopolitical considerations.
Reasons for De-dollarization
1.
Safeguarding Reserves: Some countries, such as Argentina, are seeking alternatives to the U.S. dollar to safeguard their diminishing reserves of U.S. dollars.
2.
Reduced Inflow of Dollars: Economic challenges, such as a decline in agricultural exports due to severe drought, have resulted in reduced inflow of dollars for certain countries, prompting them to explore alternatives to the U.S. dollar.
3.
Geopolitical Considerations: The imposition of sanctions by the U.S. and its allies on countries like Russia has led to a push for trade to be carried out in currencies other than the U.S. dollar.
4.
Strengthening Local Economies: Developing countries fear that U.S. sanctions could hurt their economies and, therefore, want to strengthen their local currencies and economies, leading to de-dollarization efforts.
Global Impact of De-dollarization
The de-dollarization movement has gained momentum, with countries like China, Russia, Brazil, and ASEAN seeking alternatives to the U.S. dollar for global trade. This shift represents a critical transformation in the global financial system.
Conclusion
In conclusion, the trend of de-dollarization is indeed a reality, driven by a combination of economic, geopolitical, and local economic considerations. This trend has the potential to reshape the global financial landscape and has implications for the role of the U.S. dollar as the dominant currency in the global financial system.
Sources :
1.
Dedollarisation - Wikipedia
2.
https://www.cnbc.com/2023/04/24/eco...-behind-acceleration-of-de-dollarization.html
3.
BRICS: 21 Countries Officially Agree to Ditch the US Dollar in 2023
4.
Explained: What Is Dedollarisation & Why Are Countries Dumping The US Dollar?
