The US dollar is currently losing ground as the American currency is stuck in a compulsive downward spiral. Battered heavily due to Trump’s tariffs and rising external pressure spurred by reduced dollar dependence of global nations, the currency that once stood tall is now being cast out, as reasons related to USD weaponization continue to hammer the dollar. Here are two ways through which the world is now shunning the US dollar, with the currency experiencing a dramatic value fall in the process.
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Two Ways Countries Are Dumping the US Dollar
1. Accelerated Local Currency Usage
The world is now shifting towards the local currency narrative, embracing the multipolar currency order in its complete sense. The world has now become brazen and has started to speak outright about the dollar and how the currency’s constant weaponization has started to impact global economies.
“Weaponizing the dollar delivers potent, low-cost leverage for U.S. policymakers, but its overuse is eroding the very network dominance that makes the tactic possible. Each new sanctions package nudges central banks, companies, and even allies to build parallel rails—whether in gold, local-currency swaps, or digital ledgers—chipping away at dollar primacy bit by bit”, as shared by Investopedia.
In addition to this, Trump’s tariff ordeal has further accelerated de-dollarization, sparking a pivot towards other local currencies.
“Trump’s erratic trade policy decisions and the dollar’s sharp depreciation are probably encouraging a more rapid shift towards other currencies,” said Francesco Pesole, FX strategist at ING.
2. A Counter Currency System: BRICS Pay
Another leading change that has lately been challenging the US dollar hegemony is the launch of BRICS Pay, which is reportedly underway. BRICS Pay is spearheaded by BRICS, a 10-member bloc, including power-packed economies such as Russia, India, and Brazil. The bloc has been working tirelessly towards launching a local currency system. It would be one that encourages conducting trade within the bloc using local currencies. This development is also leading the growing economies to reduce their USD reliance, which again is hammering the currency from all possible sides.
“So, what is BRICS’ strategy to escape from this American trap? It’s three-fold. 1. Create a BRICS Pay system that allows member countries to trade with one another in local currencies. 2. Expand the role of the New Development Bank (NDB)—or the BRICS Bank, as it is fondly called—to issue development/infrastructure loans at low rates for member countries. Moreover, unlike the IMF, there is no debt trap or conditions of privatization for the loans. This is freedom from the chokehold of neoliberalism. 3. Eventually create a BRICS currency, which will only be used for trade. Unlike the euro, the BRICS currency will not replace sovereign currencies.”
🌐♟️ So, what is BRICS’ strategy to escape from this American trap? It’s three-fold:
1. Create a BRICS Pay system that allows member countries to trade with one another in local currencies
2. Expand the role of the New Development Bank (NDB) – or the BRICS Bank, as it is fondly… pic.twitter.com/4ag7OmothD— Sputnik India (@Sputnik_India) July 10, 2025
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