De-dollarization A Rising Global Trend | QEconomics

Описание: De-dollarization A Rising Global Trend | QEconomics #dedollarization #rising #global #trend

In 2023, more and more countries are moving away from the US dollar and using national currencies for international trade. This is called de-dollarization.

The Spokesperson of the Russian Foreign Ministry, Maria Zakharova, said that de-dollarization is not because of Russian instigation, but because more and more countries are realizing that the US dollar has become a "very problematic" means of payment.

There are several reasons why de-dollarization is happening. First, the US dollar has been used by the United States as a weapon to punish countries that do not follow its policies. This is evident from the sanctions imposed by the United States on Russia, Iran, and other countries. These sanctions have damaged the economies of these countries and made them more vulnerable to US intervention.

Second, the US dollar is no longer a stable currency. This is evident from the high volatility of the US dollar exchange rate in recent years. The volatility of the US dollar exchange rate can pose risks to countries with large US dollar reserves.

Third, more and more countries want to reduce their dependence on the United States. These countries want to have more room to maneuver in their economic policies.

According to the latest report from the International Monetary Fund (IMF), the share of the US dollar in global foreign exchange reserves in 2023 has fallen to 54%, from 61% in 2022. This shows that de-dollarization is indeed happening, albeit not on a large scale yet.

Some countries that have reduced the use of the US dollar in international trade include:

• Russia: Russia has switched to using rubles in its oil and gas trade with other countries.

• China: China has promoted the use of yuan in trade with other Asian countries.

• Iran: Iran has switched to using rials in its oil trade with other countries.

• Saudi Arabia: Saudi Arabia has switched to using riyals in its oil trade with China.

• Brazil: Brazil has switched to using reais in its trade with other South American countries.

The trend of de-dollarization is expected to continue in the future, as more and more countries realize the risks of relying on the US dollar.

Conclusion:

De-dollarization is a global trend that will have a major impact on the global economy. If this trend continues, the US dollar will lose its dominance as the global reserve currency. This will open up opportunities for other currencies to replace the US dollar.