How many are going to ditch the dollar for trade?
Brazil and China have recently struck a deal where they are going to trade in their own currencies. Russia has looked at the same to some extent, Turkey, Iran, Argentina, who else might join in?.
De-dollarization trend growing?
Are sanctions to blame for this mess?
The idea of the US dollar being the reserve currency has been challenged for some time, but it seems that the idea is gaining popularity in recent years. What will the consequences be down the road? Might the US go back on a gold standard?
Some have suggested already and for some time that we are heading toward a post-US dollar world.
It is clear that a number of countries are looking to diversify and change things.
Will cryptocurrency have its time again to come up as a consideration for some? or a digital central bank currency?
managing foreign currency risks
Some have also started looking at precious metals for that diversification. Are economic sanctions by the US going to be less effective as a result? Countries like Russia have said that they see it as providing less foreign currency risks and it seems others agree as there are a number of countries looking to move in this direction it seems.
Pics:
pixabay
This is not financial advice.
Sources:
https://www.bloomberg.com/news/articles/2022-12-21/fx-weaponization-supercharges-de-dollarization-drive
https://www.kitco.com/news/2023-02-17/Half-the-world-to-dump-U-S-dollars-in-future-causing-tsunami-of-inflation-and-asset-price-collapse-paving-the-way-for-CBDCs-and-The-Great-Reset-Andy-Schectman.html
https://thehill.com/opinion/international/3262514-are-we-witnessing-the-beginning-of-de-dollarization/