A handful of countries are looking to diversify their central bank assets and not solely depend on the US dollar. The $39 trillion National debt keeps developing countries on their toes, as a financial downturn could majorly hit their economies. Therefore, de-dollarization is gaining steam, not exactly as a reason to challenge the US dollar, but to safeguard their economies from a potential monetary disaster.
In this article, we will highlight the list of countries that are reducing US dollar dependency. While their sole motto is not to de-dollarize to teach the US a lesson, it is based on financial safety. Below is the list of countries that are pushing the de-dollarization initiative for their progress.
Also Read: BRICS Member Iran Has Nothing To Lose, the US Does
De-Dollarization Growing In These Countries, US Dollar Usage Questioned
Russia: Following its freeze of overseas assets, Russia has heavily pivoted to the Chinese Yuan and gold. The ruble-yuan trade has skyrocketed, and Moscow is the loudest advocate of the de-dollarization agenda since 2022.
China: Beijing is promoting the offshore use of the yuan. It has established non-US dollar clearing houses worldwide and completed major commodity trades, including oil and gas in yuan with several countries. Similar to Russia, China is also the flagship-bearer of the de-dollarization initiative.
Iran: Cut off from traditional global banking, Iran settles trades in local currencies, barter systems, and gold, particularly with Russia and China. The Islamic Republic has barely used the US dollar since 2010, as the country is heavily sanctioned. Therefore, the West has led a forceful de-dollarization to bring down its economy.
India: While India’s Ministry of External Affairs has explicitly stated that de-dollarization is “not part of its financial agenda,” New Delhi is heavily pushing for the internationalization of the Rupee. India has signed local currency settlement (LCS) agreements with the UAE, Russia, and several neighbors to settle trades in Rupees rather than dollars.
Brazil: Under President Luiz Lula da Silva, Brazil has been a vocal proponent of trading in local currencies. Brazil and China have bypassed the US dollar for several bilateral transactions in agriculture and industries, leading to de-dollarization.