Currency: New Country Ditches The US Dollar

Juhi Mirza
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Source: realmoney.thestreet.com

The world is now inching towards a new currency narrative. With the multipolar world taking over, the US dollar currently stands at a lethal threshold. In this wake, a new country has joined the growing list of nations ditching the US dollar, adapting the local currency concept with considerable ease.

Also Read: Currency: Iran Calls For Unified Currency System To End US Dollar

Ditching The US Dollar: A New Trend?

US Dollar bill
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The US dollar has enjoyed decades of global prestige and supremacy. USD enjoys being crowned as the world’s reserve currency, ruling over the global economies. With the multipolar currency world taking over, calls are intensifying to prioritize local currencies, smashing away USD’s global repute.

New nations are now coming forward to declare their intentions to move away from the dollar, adding more pressure on the USD. Afghanistan, a leading nation has now joined hands to ditch the US dollar, by conducting bilateral trade with Iran in local currency.

Both nations are contemplating introducing offshore rial as the primary currency to conduct trade between the two nations. The deputy governor of the Central Bank of Iran shared how both nations are conducting talks to introduce offshore rials in Afghanistan alongside Russia and Iraq.

“Economic Adviser of the Iranian President’s Special Envoy in Afghanistan Affairs Mohammad-Mehdi Javanmard-Ghassab has said that. According to the announcement of the Taliban’s Minister of Commerce and Industry. The trade between the two countries will reach from the current $1.6 billion to $10 billion.” Tehran Times reported

Threat To The USD?

The world is increasingly becoming more financially dynamic with new sectors being introduced to work each day. In this wake, the global superpowers are now becoming more conscious about their currency narratives. This development is leading several countries to launch alternatives to rival the USD.

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BRICS alliance is one such powerful pact that has lately been spearheading the de-dollarization agenda. The ten bloc nation is now actively working towards launching its currency. The kind that directly competes with the US dollar on a global level. ASEAN nations are also joining the changing currency dynamics by working on launching their independent currency system.