De-Dollarization: 3 Countries Plan To Launch Own Currency

Several nations across the globe are eagerly waiting to disrupt the dominance of the US dollar. Time and again, countries were seen either endorsing a local currency or suggesting the launch of a new currency to replace the dollar. De-dollarization is an agenda that has garnered increased interest. Following in the footsteps of the BRICS nations, several were seen exploring different mediums to bring down the dollar. More recently, three African countries were seen showing interest in the same.

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African Countries Explore De-Dollarization

De-dollarization focuses on limiting the dependence on the US dollar for activities like global trade, as a unit of account, and even as a reserve currency. BRICS includes Brazil, Russia, India, China and South Africa. These countries have been exploring the use of an alternate currency for trade. Amidst this, three African nations including Niger, Mali, and Burkina Faso are preparing to create a new currency.

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Military takeovers have occurred in all three of these former French territories in recent years. Currently, military administrations control these countries. With the plan to introduce a new currency, they are now adopting a strategy from the BRICS to uphold de-dollarization. The partnership of Sahel States (AES), a new defensive partnership, has also been established by the three African nations.

A new “West Africa” currency that is independent of the US dollar is what the AES bloc seeks. The three countries want to use the new currency instead of using the US dollar to settle trade. General Abdourahmane Tiani, the head of Niger’s ruling military junta further added,

“The currency is a first step toward breaking free from the legacy of colonization.”

Will These Nations Face Tariffs?

US President Donald Trump is not happy with the idea of the US dollar being replaced. Time and again Trump issued warnings of imposing 100% tariffs on nations that try to bring down the dollar or employ an alternate currency. He stated,

“We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs.”

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