- Countries that abandon the dollar and adopt new currencies
- Impact of dedollarization on global trade
The member nations of the Commonwealth of Independent States (CIS) have decided abandon its use in commercial transactions US dollarwhich is no longer the main currency for international operations in 11 countries.
This decision seeks to redefine the value of its own currencies, reduce dependence on the dollar and improve competitiveness in currency markets.
This trend, known as “dedollarization”, has gained momentum following the sanctions imposed by the United States on Russia in 2022. Countries that adopt this stance can significantly alter the global economic balance.
Countries that abandon the dollar and adopt new currencies
Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan and Ukraine, member countries of the Commonwealth of Independent States (CIS), have initiated a process to reduce the use of the dollar in their cross-border transactions.
With 85% of cross-border transactions already carried out in local currency, CIS leaders have indicated that this measure reinforces the economic sovereignty of their nations and generates new tax opportunities.
Objective of reducing the use of the dollar in large financial transactions:
- Strengthen your local currencies in the forex market.
- Avoid the adverse effects of international sanctions.
- Diversify your reserves with assets like gold.
use of national currencies
Impact of dedollarization on global trade
Dedollarization implies a profound change in the international financial system. To the reduce dependence on the dollarCIS countries could:
- Reduce the influence of the United States in the global economy.
- Create new markets based on local currencies.
- Generate greater stability for their economies in the face of dollar fluctuations.
its value could be affected
The US currency could lose relevance in the coming years
