De-Dollarization: Will Tariffs Push Countries Away From The USD?
The de-dollarization movement has seen steady growth over the last decade. The BRICS bloc of nations (Brazil, Russia, India, China, and South Africa), along with its newer members, such as Iran and the UAE, have expressed the desire to move away from the US dollar. The USD continues to dominate global trade, but the sentiment of the dollar reigning supreme is fading.
Also Read: JP Morgan CEO Warns: 50% Chance of U.S. Recession in 2025
Will Tariffs Further Push The De-Dollarization Agenda?
Tariffs lead to an increase in trade costs. The move could lead to countries looking for an alternative to a US-based system. This aspect of tariffs may lead to more nations moving away from the US dollar. Tariffs could accelerate the de-dollarization movement.
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While the threat of countries moving away from the US dollar is growing, President Trump has stated that countries attempting to push the de-dollarization movement will face heavy tariffs. Trump has said that countries moving away from the dollar will face 100% tariffs.
Economist Şebnem Kalemli-Özcan has also highlighted how tariffs could further propel the de-dollarization sentiment. Countries like India and the UAE are in talks for a Rupee-based trade system. China is pushing to make its yuan an international currency. Trade invoicing in yuan has risen from 0% to 30% in just ten years.
Sanctions are another facet that has pushed countries to seek an alternative to the USD. Western sanctions on Russia and Iran have pushed both nations to bypass a dollar-based system for trade. De-dollarization has taken a strong hold among sanctioned nations.
Also Read: Watcher Guru Analysis: XRP vs. USD in Today’s Economic Climate
While the USD continues to dominate the global trade mechanism, the fear of the USD being dethroned remains prevalent. While the movement continues to spread, replacing the USD will most likely take decades to fully take form.
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De-Dollarization: Will Tariffs Push Countries Away From The USD?
The de-dollarization movement has seen steady growth over the last decade. The BRICS bloc of nations (Brazil, Russia, India, China, and South Africa), along with its newer members, such as Iran and the UAE, have expressed the desire to move away from the US dollar. The USD continues to dominate global trade, but the sentiment of the dollar reigning supreme is fading.
Also Read: JP Morgan CEO Warns: 50% Chance of U.S. Recession in 2025
Will Tariffs Further Push The De-Dollarization Agenda?
Tariffs lead to an increase in trade costs. The move could lead to countries looking for an alternative to a US-based system. This aspect of tariffs may lead to more nations moving away from the US dollar. Tariffs could accelerate the de-dollarization movement.
Also Read: Top 3 Cryptocurrencies To Watch This Weekend
While the threat of countries moving away from the US dollar is growing, President Trump has stated that countries attempting to push the de-dollarization movement will face heavy tariffs. Trump has said that countries moving away from the dollar will face 100% tariffs.
Economist Şebnem Kalemli-Özcan has also highlighted how tariffs could further propel the de-dollarization sentiment. Countries like India and the UAE are in talks for a Rupee-based trade system. China is pushing to make its yuan an international currency. Trade invoicing in yuan has risen from 0% to 30% in just ten years.
Sanctions are another facet that has pushed countries to seek an alternative to the USD. Western sanctions on Russia and Iran have pushed both nations to bypass a dollar-based system for trade. De-dollarization has taken a strong hold among sanctioned nations.
Also Read: Watcher Guru Analysis: XRP vs. USD in Today’s Economic Climate
While the USD continues to dominate the global trade mechanism, the fear of the USD being dethroned remains prevalent. While the movement continues to spread, replacing the USD will most likely take decades to fully take form.
Read More