Are you seeing a global shift away from the US dollar? You're not alone. The move to de-dollarization is gaining momentum, with several nations exploring alternatives for international trade and financial stability. A significant development is the increasing number of countries choosing to pay in their local currencies, lessening reliance on the US dollar.
BRICS Spearheads De-Dollarization: India and Indonesia Lead the Way
India and Indonesia, two key members of the BRICS alliance, have officially agreed to abandon the US dollar for cross-border transactions, opting instead to settle trade in their respective national currencies. This landmark agreement marks a significant step towards reduced dependence on the dollar and fosters stronger economic ties between the two nations. This bilateral agreement between 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, further cementing the trend of using local currencies in international trade.
Beyond BRICS: A Growing Global Movement
After BRICS, a new alliance has kick-started the de-dollarization process and is using local currencies for trade and not the US dollar. It's not just BRICS members leading the charge. The desire for financial independence and reduced exposure to US monetary policy is spreading globally. The discussion around 'brics another country to ditch us dollar pay local currency' is now a reality for many.
CIS Nations Embrace Local Currency Transactions
The Commonwealth of Independent States (CIS) is also embracing de-dollarization. BRICS: CIS Alliance Consisting of 12 Countries Ditch the US Dollar, Use Local Currencies For 85% Transactions. BRICS member Russia convinced the CIS bloc to... dramatically reduce reliance on the US dollar. The Commonwealth of Independent States (CIS), which consists of 12 countries, has settled 85% of cross-border transactions in local currencies, showcasing a significant shift in financial practices. This trend, driven in part by BRICS member Russia convinced the CIS bloc to adopt local currency payments, represents a major step away from dollar dominance.
Why the Shift Away From the US Dollar?
Several factors are driving this trend. Concerns about US monetary policy, sanctions, and the desire for greater economic independence are all contributing to the move towards de-dollarization. By using local currencies, countries can reduce transaction costs, mitigate exchange rate risks, and foster stronger regional trade relationships. This allows countries like India and Indonesia more autonomy over their financial affairs.