De-dollarization: How countries are abandoning the dollar in favor of national currencies

The world is moving away from the dollar, with countries increasingly trading in their own currencies. What does this mean for the global economy and the US's position on the world stage?

The world of big business has decided that it is enough to dance to the dollar's tune. Many countries have found a loophole to get the dollar out of the way by using their own currencies. So, let's go in order.

Brazil and China: Big Play with Their Own Money

Trade between Brazil and China exceeded $144 billion in 2023. Serious numbers. Brazil's main exports — soybeans, oil — continue to move to China, but not for dollars, but for yuan and reals. Both countries avoid currency fluctuations and conversion costs. This scheme is to their advantage — the money flows, and there is no need to look back at the dollar.

Türkiye and Russia: Gas flows, lira and rubles go

Turkey and Russia, like old friends, continue to trade on their own terms. In 2023, trade turnover reached $62 billion. And do you know what's remarkable? The gas that Turkey buys from Russia is paid for not in dollars, but in lira and rubles. Convenient? Yes. Flexible? Of course. This is not just trade, it is a smart way to bypass all currency and political obstacles.

Iran and China: Yuan is the solution to all problems

Iran has long been under sanctions, but this does not stop it. In 2023, they made deals with China for 15 billion dollars. All thanks to the yuan, which helps both countries bypass sanctions barriers. Iran continues to supply oil, and China in return gives its currency – everything is fair, simple and effective.

Argentina and China: When the Yuan Saves

Argentina, a country where economic crisis has become almost a habit, has found a way out in cooperation with China. In 2023, their trade turnover reached 24 billion dollars, and a significant part of the transactions were conducted in yuan. Chinese goods continue to flow into Argentina, and the yuan, like a good angel, saves the situation. There is no place left for the dollar here.

India and Russia: Rupees and Rubles – a New Reality

India and Russia have chosen their strategy: trade in rupees and rubles. In 2023, their trade grew to $65 billion, and this is a serious figure. Russia continues to supply oil and coal, India calmly pays in rupees. All this without unnecessary currency risks, and most importantly – without the need to look back at the American currency.

Indonesia and Malaysia: Neighbours with Common Interests

Indonesia and Malaysia have decided they don’t need the dollar’s ​​extra interference. In 2023, their trade is approaching $20 billion, and all of that volume is handled through their national currencies. This isn’t just a conversion savings, it’s a strengthening of relations and stability for the future.

Russia and China: Giants Without a Dollar

But here we need to sit tight. Russia and China generated $240 billion in trade turnover in 2023. And these are not just dry figures. These are the largest supplies of oil and gas, industrial goods. Everything goes through its own channels, and the yuan and the ruble are confidently strengthening their positions. Of course, the US has been in better situations.

If something can be made simpler, do it. That's what can be said about the new trend of settlements in national currencies. More and more countries are building their trade, avoiding dollar vicissitudes. This is not just saving on transactions. This is a smart game in the market that strengthens sovereignty and makes business more sustainable.

Author's opinion: Currency transfers that go through non-dollar systems such as CIPS (Cross-Border Interbank Payment System) in China or SPFS in Russia, can bypass the American banking infrastructure. These systems were created as alternatives to SWIFT to avoid dependence on the American dollar and sanctions. For example, if two countries use their national currencies or other alternative systems, American banks may not be involved in the process and the transaction may remain outside the U.S. radar.

Source link