De-Dollarization: 10 CIS Nations Have Decided To Ditch The US Dollar
The phenomenon of de-dollarization is once again actively gaining momentum. The US dollar is declining rapidly, hammered heavily due to the recent US tariff ordeal that has ended up wounding the American currency. In the middle of this, calls to diversify away from the US dollar have also been heard, with nations and investors both looking forward to exploring capable USD alternatives. In the meantime, a group of ten Commonwealth of Independent States has decided to ditch the US dollar, moving away from the currency to uplift their economies and liberate them from the shackles of American hegemony.
Also Read: Tanzania’s US Dollar Ban Set the Stage for Kenya & Other EAC Nations
Why Is The World Moving Towards De-Dollarization?
De-dollarization is not new. The phenomenon has long existed within the layers of the global economic structure and has now started to gain traction as US dollar hegemony continues to hurt nations. The US dollar is the world’s leading asset, a reserve currency held by central banks across the world. But the decay of the USD began the moment the United States started weaponizing the dollar, sanctioning nations left, right, and center.
“The wide use of the U.S. dollar in imposing sanctions has triggered other nations to look for alternative currencies for bilateral trade.”
To counter the US, alliances like BRICS and ASEAN have initiated ideas related to new payment mechanisms, even mulling over launching a new currency to combat the growing abuse of the USD.
Also Read: Shiba Inu: Will SHIB Reach $1 in 5 Years?
With President Donald Trump imposing tariffs on multiple nations, the calls for de-dollarization are once again gaining steam.
“The market is rapidly de-dollarizing. It is remarkable that international dollar funding markets and cross-currency basis remain well-behaved. In a typical crisis environment, the market would be hoarding dollar liquidity to secure funding for its underlying US asset base. This dollar imbalance is what ultimately results in the triggering of the Fed swap lines. Dynamics here seem to be very different: the market has lost faith in US assets, so that instead of closing the asset-liability mismatch by hoarding dollar liquidity, it is actively selling down the US assets themselves.” Deutsche Bank shared.
Nations Ditching USD
As the de-dollarization narrative escalates and gains pace, ten Commonwealth of Independent States have decided to dump the US dollar. These states are listed as follows:
- Armenia
- Turkmenistan
- Uzbekistan
- Azerbaijan
- Belarus
- Moldova
- Russia
- Tajikistan
- Kazakhstan
- Kyrgyzstan
The leaders of these nations have decided to uplift the local currency narrative and trade, ditching the US dollar in the process. At the same time, reports suggest that these nations are also working on launching new financial systems independent from the USD intervention.
Also Read: Bitcoin Wipes $215M in Shorts, Inches From $100K Breakout
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De-Dollarization: 10 CIS Nations Have Decided To Ditch The US Dollar
The phenomenon of de-dollarization is once again actively gaining momentum. The US dollar is declining rapidly, hammered heavily due to the recent US tariff ordeal that has ended up wounding the American currency. In the middle of this, calls to diversify away from the US dollar have also been heard, with nations and investors both looking forward to exploring capable USD alternatives. In the meantime, a group of ten Commonwealth of Independent States has decided to ditch the US dollar, moving away from the currency to uplift their economies and liberate them from the shackles of American hegemony.
Also Read: Tanzania’s US Dollar Ban Set the Stage for Kenya & Other EAC Nations
Why Is The World Moving Towards De-Dollarization?
De-dollarization is not new. The phenomenon has long existed within the layers of the global economic structure and has now started to gain traction as US dollar hegemony continues to hurt nations. The US dollar is the world’s leading asset, a reserve currency held by central banks across the world. But the decay of the USD began the moment the United States started weaponizing the dollar, sanctioning nations left, right, and center.
“The wide use of the U.S. dollar in imposing sanctions has triggered other nations to look for alternative currencies for bilateral trade.”
To counter the US, alliances like BRICS and ASEAN have initiated ideas related to new payment mechanisms, even mulling over launching a new currency to combat the growing abuse of the USD.
Also Read: Shiba Inu: Will SHIB Reach $1 in 5 Years?
With President Donald Trump imposing tariffs on multiple nations, the calls for de-dollarization are once again gaining steam.
“The market is rapidly de-dollarizing. It is remarkable that international dollar funding markets and cross-currency basis remain well-behaved. In a typical crisis environment, the market would be hoarding dollar liquidity to secure funding for its underlying US asset base. This dollar imbalance is what ultimately results in the triggering of the Fed swap lines. Dynamics here seem to be very different: the market has lost faith in US assets, so that instead of closing the asset-liability mismatch by hoarding dollar liquidity, it is actively selling down the US assets themselves.” Deutsche Bank shared.
Nations Ditching USD
As the de-dollarization narrative escalates and gains pace, ten Commonwealth of Independent States have decided to dump the US dollar. These states are listed as follows:
- Armenia
- Turkmenistan
- Uzbekistan
- Azerbaijan
- Belarus
- Moldova
- Russia
- Tajikistan
- Kazakhstan
- Kyrgyzstan
The leaders of these nations have decided to uplift the local currency narrative and trade, ditching the US dollar in the process. At the same time, reports suggest that these nations are also working on launching new financial systems independent from the USD intervention.
Also Read: Bitcoin Wipes $215M in Shorts, Inches From $100K Breakout
Read More
De-dollarization Threat: Trump’s Moves Could Completely Erode Dollar Power