Posted on 01/09/2024 11:42:27 AM PST by delta7
De-dollarization is the process of reducing the US dollar's hegemony in global trade and financial operations by shifting to alternative exchange methods such as national currencies and domestic payment systems, as well as transferring currency reserves.
A third of UN member states have already opted for de-dollarization and decided to rely on national currencies to conduct payments, Sputnik's analysis has found.
The analysis, which looked into statements made by officials from 193 UN countries in international and Russian media, showed that representatives of at least 68 UN nations openly supported the process of de-dollarization or stated that they were taking measures to this effect.
According to the study, the most decisive calls to scrap the greenback and replace it with national currencies came from politicians whose countries are members of major regional organizations such as the Association of Southeast Asian Nations (ASEAN) and BRICS, which originally сomprised Brazil, Russia, India, China, and South Africa - but was expanded to include a host of other nations on January 1.
For his part, Brazilian President Luiz Inacio Lula da Silva has repeatedly proposed the creation of an alternative currency to the dollar for payments within BRICS. The view was shared by South African Finance Minister Enoch Godongwana, who called for enhanced lending in national currencies. He was in turn echoed by Kenyan President William Ruto, who urged local leaders to take the first steps towards abandoning the dollar and make transactions through the pan-African payment system instead.
Sputnik's investigation indicated that many countries have already realized the fact that the dollar poses a threat not only as a means of payment, but also as an instrument of savings, so the concept of de-dollarization should be considered more broadly.
Israel, for instance, earlier announced that it would reduce the dollar's share in the country’s foreign exchange reserves in favor of the yuan. Some countries are making more targeted efforts to reduce their population's dependence on foreign currencies, including Vietnam, which has banned long-term foreign currency deposits.
Maxim Osadchy, head of the analytical department of the Moscow-based BKF Bank, told Sputnik that de-dollarization is one of the consequences of increasing fragmentation of the global economy and the transition to a multipolar world.
"De-dollarization intensified due to the anti-Russian sanctions, which clearly showed the risks of the national economy’s dependence on the US currency. De-dollarization reduces the demand for the greenback and, as a result, contributes to its devaluation," Osadchy pointed out.
This followed Russia's Minister for Integration and Macroeconomics of the Eurasian Economic Commission Sergey Glazyev telling Sputnik that as the potentially limitless range of cooperation between the Eurasian Economic Union (EEU) and ASEAN aspires to reach new levels, it is especially important to accelerate the transition to national currencies.
"This is an imperative for us; we can no longer trade in Western currencies. But it takes time for our partners to fully appreciate the benefits and importance of a transition to national currencies," the minister stressed.
The dollar suffered a 2.7 percent decline against other major global currencies during 2023, the greenback’s worst-performing year since the global economic downturn associated with the coronavirus in 2020.
De-dollarization is not a bad idea, considering our debt. The bigger issue is where do they go? There really isn’t anything out there that is any better.
The Peso will be King!
Start by listing the desired characteristics of a global trading currency, then identify what alternatives exist.
Truth is, there are none.
34 Trillion in debt with over a Trillion needed for interest payments. Why would anyone or any country be nuts enough to lend anything to the criminals infesting the District of Corruption?
Gold never gets old.
Start by listing the desired characteristics of a global trading currency, then identify what alternatives exist.
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You said it with your words- a currency backed by commodities and goods. Oil, energy, metals, food, Gold, etc…the US and Russia has the resources, however Russia beats the US in every sector. Brics has discussed ( and others) commodities based currency, not like the US which is currently based on debt.
The US could be the largest exporter, but Senike Joe and the Greens have shut it all down.
The dollar is covered with oozing boils, but the Yuan and Ruble have Stage 4 lung cancer.
The dollar is covered with oozing boils, but the Yuan and Ruble have Stage 4 lung Cancer
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Agreed, but that is today,but the pendulum swings. Times are changing, stay tuned.
Commodity_backed currencies are unstable.
Particularly the consumables.
Gold’s primary advantage was that it was inert, it didn’t spoil and it wasn’t used up.
But there’s nothing like enough of it.
So perhaps we should ask why do people use the dollar, rather than the Euro. What did the Euro do wrong?
EU has like the US a high debt. 85 percent of GDP, and rising. Not as bad as the US ( 130 percent). In short, remember England refused to use the Euro, for many reasons which will answer the question.
More:
https://www.bruegel.org/policy-brief/rising-cost-european-union-borrowing-and-what-do-about-it
Also realize Germany and other EU nations are suffering from senile Joe’s sanctions- Russias reverse sanctions have damaged heavily their manufacturing which depended on cheap Russian energy, commodities, metals, etc.
The future outlook for the EU manufacturing is bleak.
The reason the Euro fell out of contention as a reserve currency:
https://www.theguardian.com/world/2013/mar/25/cyprus-bailout-deal-eu-closes-bank
Not the only reason- Cyprus ( EU) started Bail-ins. They ruled the depositors loaned their money to the banks and ruled they were “ investors”. They were given stock in the failed banks instead of cash. Many think that can happen here.
Research Bail-ins, as the EU did it already most will not deposit large amounts into EU banks.
Others have noticed this, as well as pro Russian posters to ignore posting guidelines at will.
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