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De Dollarisation

All articles tagged with #de dollarisation

world1 month ago•4 min saved

Trump's Iran strikes accelerate a multipolar shift away from dollar dominance

Trump’s strikes on Iran, framed as a breach of international norms, are part of a broader push that is accelerating de-dollarisation and a move toward a multipolar financial system. Central banks are diversifying reserves, new settlement infrastructures and digital currencies are forming, and BRICS-linked initiatives could bypass the dollar. While the dollar remains dominant in trade and U.S. Treasuries are still sought in crises, its share of global reserves has fallen from about 71% in 2001 to roughly 57%, signaling growing non-American financial influence and potential costs for Washington amid rising deficits.

via The Guardian|

#brics #central-banks #de-dollarisation

world2 months ago•2 min saved

IMF drills for potential dollar rush

The IMF is preparing for extreme scenarios, including a rapid sell-off of dollar-denominated assets, as Georgieva says the Fund models “unthinkable” events. With Trump tariffs and criticisms of the Fed, confidence in the dollar has waned, gold prices surged, and BRICS nations are pursuing de-dollarisation. Georgieva suggested Europe issue more common debt to offer a safe asset alternative, though political resistance makes this difficult. The dollar’s status as the global reserve currency is not expected to change imminently due to the size and liquidity of US debt markets.

via Euractiv|

#brics #de-dollarisation #eu-common-debt

world9 months ago•5 min saved

Africa Develops Non-Dollar Payment Systems Amid Trump Warnings

Africa is making significant progress in establishing local currency payment systems like PAPSS to reduce reliance on the dollar, aiming to lower trade costs and boost regional trade, despite opposition and threats from the US, particularly under President Trump's stance against de-dollarisation efforts.

via Reuters|

#africa #de-dollarisation #geopolitics

finance2 years ago•3 min saved

The Fragile Future of the US Dollar as Global Reserve Currency

The dollar's status as the world's dominant currency is under scrutiny due to rivalry with China, fallout from Russia's war in Ukraine, and wrangling in Washington over the US debt ceiling. The dollar share of official FX reserves fell to a 20-year low of 58% in Q4 2022, according to IMF data. However, de-dollarisation would require a vast and complex network of exporters, importers, currency traders, debt issuers, and lenders to independently decide to use other currencies, making it unlikely. While there may not be a single dollar successor, mushrooming alternatives could create a multipolar world. The dollar's status is underpinned by the $23 trillion US Treasury market, viewed as a safe haven for money.

via Reuters|

#de-dollarisation #finance #forex-transactions

finance3 years ago•6 min saved

BRICS Countries Collaborate to Create Alternative Currency to US Dollar

The BRICS nations (Brazil, Russia, India, China, and South Africa) are reportedly considering creating a new currency to facilitate trade, which could be announced as soon as August when the countries meet for their annual summit in South Africa. The move is part of a larger trend towards de-dollarisation, which aims to reduce the US dollar's dominance in global markets. If the BRICS nations do create a new currency, it could help stabilize their economies and lead to increased consumer confidence and economic growth. However, it remains to be seen whether India will accept the new currency and whether the plan will actually come to fruition.

via Firstpost|

#brics #currency #de-dollarisation