BRICS & ASEAN: 10 Asian Countries Ditching the US Dollar?
Is the tide turning against the US dollar? Growing momentum suggests a shift in global finance, with several nations exploring alternatives for international trade. Recent reports highlight initiatives from both BRICS and ASEAN countries to reduce reliance on the USD.
ASEAN Nations Embrace Native Currencies
Significant developments are emerging from Southeast Asia. 10 ASEAN countries have agreed to stop trading in the U.S. dollar and will use native currencies for cross-border settlements. ASEAN is a bloc of 10 countries compromising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. The leaders of 10 Southeast nations and the members of the Association of Southeast Asian Nations (ASEAN) have agreed to promote their native currencies for cross-border transactions, aiming for greater economic independence.
BRICS Influence: De-Dollarization Gains Traction
The BRICS economic alliance, which includes Brazil, Russia, India, China, and South Africa, is actively promoting alternatives to the US dollar. BRICS members Russia and China are convincing other developing countries to ditch the U.S. dollar and accept the soon-to-be-released currency for cross-border transactions. This push aligns with a broader trend of de-dollarization driven by geopolitical factors and the desire for diversified financial systems. Also Read: BRICS: South Africa sees potential growth from these evolving trade dynamics.
India and Indonesia Lead the Way
Specifically, India and Indonesia have officially agreed to ditch the US dollar for cross-border trade. The two BRICS nations will now conduct transactions using their national currencies, a move that signifies a significant step towards reducing dollar dependency in Asia. This bilateral agreement sets a precedent that other countries may follow.
Asia Diversifying: Yuan, Gold, and Beyond
Hace 1 día Asia diversifies from US dollar with Chinese yuan, gold, Indonesia and Japan ranked among the top 10 countries making the most progress on this front. While the US dollar remains a dominant global currency, Asian economies are actively exploring options such as the Chinese Yuan and increased gold reserves to safeguard their financial stability and foster regional trade.
Conclusion: A Shifting Global Landscape
The reported agreement among 10 ASEAN nations and the bilateral moves by India and Indonesia underscore a growing trend of de-dollarization in Asia. While the US dollar's role is not immediately threatened, these developments suggest a move towards a more multi-polar currency system and greater regional economic integration. The 10 nations that have decided to ditch the U.S. dollar are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. The long-term implications of these shifts remain to be seen, but they undoubtedly signal a changing landscape in global finance.