Focus on Arts and Ecology

April 7, 2023

The U.S. dollar has dominated global trade and capital flows for nearly eight decades since the end of World War II.

However, many nations are now looking for alternatives to the greenback to reduce their dependence on the U.S., raising questions over the currency's future dominance.

Which countries are moving away from the dollar?

· Russia and China have been exploring alternatives to reduce the dollar's hegemony. As Western nations imposed economic sanctions on Russia following its special military operation in Ukraine, Moscow and Beijing have cooperated to establish financial independence from the U.S. dollar.

· Since 2022, ruble-yuan trade has increased eighty-fold, and Russia and Iran are reportedly collaborating on a gold-backed cryptocurrency

· Central banks, particularly those in Russia and China, have accelerated their gold purchases to diversify reserves away from the dollar

· Brazil and Argentina have considered creating a common currency for South America's two largest economies

· The United Arab Emirates and India are negotiating a shift away from the dollar, using rupees to trade non-oil commodities, according to Reuters

· For the first time in 48 years, Saudi Arabia has indicated its openness to trading in currencies other than the U.S. dollar

(Sources: China Report)