Is the US Dollar's dominance waning? The BRICS nations, now known as ‘The BRICS Plus’ (expanded to include Egypt, Ethiopia, Iran, and the United Arab Emirates), are signaling a significant shift in global trade. They intend to dump the U.S. dollar in their “ bilateral transactions ”. This move, aimed at promoting economic independence and strengthening regional ties, is gaining momentum, especially in Southeast Asia.

The trend away from the dollar isn't limited to the BRICS group. Russian Foreign Minister Sergey Lavrov said that Putin’s administration has convinced 10 Southeast Asian countries to sideline the U.S. dollar for international trade. These countries are increasingly opting to use local currencies in trade agreements, fostering greater financial autonomy and reducing reliance on the US economy.

This shift towards using local currencies within BRICS and Southeast Asia has potential implications for the global financial landscape. By fostering bilateral transactions and decreasing dependence on the US dollar, these nations are laying the groundwork for a more multipolar economic system. The long-term effects on the dollar's global reserve currency status remain to be seen, but the trend is undeniable: countries are actively seeking alternatives to the US dollar in international trade and finance. The move towards local currency usage represents a significant geopolitical and economic development impacting international trade and financial stability.